Category Taxation in Tanzania

Tanzania To Levy Tax on Empty Land

October 17, 2016 Taxation in Tanzania

Tanzania Levys Empty land TaxDODOMA – Tanzania hopes to discourage land hoarding by charging high taxes on ownership of empty residential land and under-utilised farms.

Over the weekend the Minister of Lands, Housing and Human Settlement Development of Tanzania William Lukuvi launched the government appointed National Land Use Planning Commission, and announced that the government intends to enact a new tax on land hoarding.

The Minister stated that from July next year landowners who do not develop their land will be hit with punitive levels of taxation.

It is hoped that the taxes will encourage landowners to either begin development of residential housing or to sell their tracts of land to other developers who will make use of the space.

Similar taxes will be applied to unused agricultural land, with the taxes to be...

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Tanzania Needs to Digitise VAT Payments

September 21, 2016 Taxation in Tanzania

Sales RecieptsDODOMA – Tanzania’s tax revenues could rise by as much as 10 percent of the national GDP, if the government could successfully digitise the VAT system.

The UN group the Better Than Cash Alliance has claimed that Tanzania could boost the economy by nearly half a billion dollars by digitising the national Value Added Tax system.
The findings in the new report are based on the previous results of Tanzania’s attempts to digitise parts of the economy.

It was shown that the government of Tanzania has overcome significant obstacles in the past when encouraging the digitisation of payments made to the government by businesses and by individuals, as, as a result has seen a boost in the efficiency of processing imports and exports, boosts to tourism numbers and revenues, and a reduction in unreco...

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VAT Does Not Deter Tourist from Tanzania

September 16, 2016 Taxation in Tanzania

DODOMA – Tanzania is seeing significant growth in the tourism industry, as thousands flock to the country’s national parks, despite the recent implementation of a VAT on tourism services.

A new report released by the Ministry of Natural Resources and Tourism of Tanzania indicated that the country’s recent implementation of Value Added Tax on tourism services has not hurt the industry, as previously expected.

Between July and August this year, the total amount of VAT collected from the tourism industry was TZS 67.87 billion, while over the same period in 2015 the collections reached TZS 57.96 billion.

Similarly, the number of tourist visiting national parks between July and August rose to 348 547, compared to a total of 340 308 in 2015.

Prior to the introduction of the VAT on tourism se...

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Tanzania to Drop tax on Wood Carvings

March 25, 2015 Taxation in Tanzania

DODOMA – Tourists and craftsmen in Tanzania will soon feel some relief from taxation as the government eyes abolishing an exorbitant tax on locally produced wood carvings.

In a speech delivered in Arusha late last week the Minister for Natural Resources and Tourism of Tanzania Lazaro Nyalandu indicated that the controversial tax on wood carvings paid by tourists will soon be abolished.

As of February this year tourists departing the country with locally purchased wooden carvings valued at more than approximately USD 300 will be required to pay a tax of USD 70, while carvings valued less than USD 300 will entail a levy of USD 16.

According to the Minister, the tax greatly hinders the government’s efforts to boost tourism in the country, as “…curios and hand-made crafts businesses have a clo...

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Tanzania Pushes Electronic Cash Registers to Boost Tax Collections

April 29, 2014 Taxation in Tanzania

DAR ES SALAAM – The government of Tanzania is urging retailers to make use of standardized cash registers to help ensure that their businesses are not neglecting their VAT obligations.

Over the weekend the President of Tanzania Jakaya Kikwete issued a statement confirming that the Tanzania Revenue Authority will resume a nationwide training program Electronic Fiscal Devices (EFD) by retailers.

The EFD devices were first introduced in Tanzania in 2010 in order to ensure that all businesses fully record and report their sales, making it harder for retailers to hide and neglect full VAT obligations .

The nationwide training program is aimed at not only at encouraging more businesses to adopt the use of the machines to help keeping track of sales and taxes owing, but also at highlighting the...

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