Government to introduce new levies on imported vehicles and machinery
What you need to know:
- The new charges are expected to take effect in the upcoming fiscal year, pending parliamentary approval.
Dar es Salaam. The government has announced the introduction of new levies on imported vehicles and heavy machinery, a move aimed at boosting domestic revenue and supporting key national development priorities.
Delivering the 2025/26 national budget in Parliament today, Finance Minister Dr Mwigulu Nchemba unveiled the proposed charges, which will vary based on engine capacity.
According to the minister, the new levies are part of broader fiscal reforms designed to expand the tax base and ensure equitable contribution to public finances.
Under the proposed structure, importers will be required to pay: Sh50,000 for vehicles with engine capacity between 0cc and 1000cc, Sh100,000 for vehicles with engine capacity between 1001cc and 1500cc.
Whereas Sh150,000 for vehicles with engine capacity between 1501cc and 2500cc, Sh200,000 for vehicles with engine capacity above 2501cc
Heavy machinery such as excavators, bulldozers, and forklifts will pay Sh250,000.
“These measures are part of our commitment to create a fair and sustainable revenue system that supports infrastructure and economic growth,” Dr Nchemba told lawmakers.
The new charges are expected to take effect in the upcoming fiscal year, pending parliamentary approval.
Analysts say the levies are likely to have a ripple effect on car prices and import costs, particularly for second-hand vehicles, which dominate the Tanzanian market. However, government officials argue that the fees are moderate and necessary to raise funds for national priorities without introducing prohibitive costs.
The announcement is one of several fiscal changes proposed in the budget aimed at strengthening domestic resource mobilisation amid a tightening global aid environment.
