Tanzania | Budget Speech 2025/2026 – Key Proposed Changes

Tanzania | Budget Speech 2025/2026 – Key Proposed Changes

On 12 June 2025, Tanzania’s Finance Minister, Dr Mwigulu Nchemba, presented the Budget Speech for the 2025/26 tax year. This budget marks the final year of Tanzania’s Third Five-Year Development Plan and supports the country’s long-term Vision 2025.

No Changes to Payroll
There are no proposed changes to payroll regulations for the 2025/26 tax year. All current payroll rules will remain in place.

Proposed Tax and Policy Changes
The budget includes several tax and policy updates aimed at increasing government revenue and supporting local industries. Key proposals include:

Tax Administration Act
  1. The 15-day deadline to apply for a tax deposit waiver (when challenging a tax assessment) will be removed. This change gives taxpayers more time to submit waiver requests.
  2. Biometric ID systems will be linked with health, education, tax, and social welfare services to improve data accuracy and make public services more efficient.
Other Notable Measures
  1. Foreign visitors (except citizens of EAC and SADC countries) will be required to buy travel insurance costing USD 44 for visits of up to 92 days.
  2. An amendment to the Business Licensing Act will allow the Trade Minister to restrict non-citizens from carrying out certain business activities to protect local sectors and support Tanzanian entrepreneurs.
Next Steps
Following Parliament’s review of the budget proposals, final approval is expected by the end of June 2025. The Finance Act will come into effect on 1 July 2025. Further details will be provided once the Finance Act is published.

The Budget Speech can be viewed on the Tanzania Ministry of Finance website.


 


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