Zanzibar | Finance Act 2026

Zanzibar | Finance Act 2026

Zanzibar enacted the Finance (Public Revenue Management) Act, 2026, Act No. 2 of 2026, which amends several tax and revenue laws, effective 1 July 2026.
​
What is changing
Skills Development Levy rate
  1. The Skills Development Levy rate applicable in Zanzibar is reduced from 4% to 3%.
  2. This applies to employers operating in Zanzibar under the Vocational Training Act, No. 8 of 2006.
  3. The Tanzania Mainland SDL rate is set separately and is not amended by this Act.
Employment Act employer reporting penalty
  1. A new criminal penalty for failing to submit mandatory labour records applies to employers.
  2. Employers are required to furnish copies, returns, and statistics relating to employment contracts, employee numbers, remuneration rates, and conditions of service.
  3. Any employer failing to provide this information commits a criminal offence.
  4. Upon conviction, the penalty is a fine of not less than TZS 1,000,000, imprisonment for not less than three months, or both.
Official source
  1. ​Click here to access the official publication: https://zanzibarassembly.go.tz/storage/documents/acts/english/all/1783499241.pdf