Bettors, used car dealers, motorcyclists face new taxes in 2026/27 Budget

The measures form part of the government's strategy to increase tax revenue to 13.7 percent of gross domestic product (GDP) in 2026/27 from 13.2 percent in 2025/26, with a target of reaching 18 percent by 2030/31.

Among the most significant changes is the introduction of a five percent excise duty on betting stakes, which the government expects will generate Sh74.5 billion annually.

Mr Omar said the measure was intended to address the social and economic consequences of gambling, including addiction and declining workforce productivity among young people.

Motorcycles, a key source of transport and employment for many Tanzanians, will also attract a five percent excise duty. However, electric motorcycles, gas-powered motorcycles and ambulances have been exempted.

Consumers may also face higher prices for cosmetics and personal care products after the government increased excise duty on beauty products from 10 percent to 15 percent.

In another measure aimed at supporting domestic manufacturers, imported plastic and rubber clogs will now attract a 10 percent excise duty.

Used vehicles will also become more expensive. Excise duty on vehicles aged between eight and 10 years will rise from 15 percent to 20 percent, while vehicles older than 10 years will attract a 40 percent rate, up from 30 percent. Vehicles more than 20 years old will be subject to a 50 percent excise duty.

Mr Omar said the changes were intended to discourage the importation of ageing vehicles, which contribute to environmental pollution and disposal challenges.

Importers will also face higher costs following an increase in the Customs Processing Fee from 0.6 percent to one percent.

The government has further raised import duty on fabrics from 25 percent to 35 percent, or $0.30 per metre, whichever is higher, to support local textile manufacturers.

Imported crude edible oils, including crude and semi-refined palm oil, will now attract a 10 percent import duty. The government says the move is intended to curb the misdeclaration of semi-refined palm oil as crude palm oil to benefit from lower tariff rates.

Industrial protection measures have also been expanded through new Industrial Development Levy charges on imported exercise books, notebooks, fishing nets, trailers, doors, windows and selected steel and aluminium products.

The digital economy has not been spared. Foreign companies providing digital services in Tanzania will pay income tax at a rate of three percent, up from two percent previously.

Meanwhile, small businesses operating under the presumptive tax regime will face a tax rate of 4.5 percent, up from 3.5 percent, on annual turnover ranging between Sh11 million and Sh200 million.

The government has also introduced a one percent withholding tax on payments for live animals, unprocessed milk, fish and fish maws.

The proposed measures will take effect in the 2026/27 financial year, subject to parliamentary approval of the Finance Bill.