Dar es Salaam. Buyers and suppliers of electric vehicles are set to benefit following the Government’s decision to exempt electric mobility products from taxes, a move expected to lower prices and boost adoption across the country.
In addition to the tax relief, the Government has directed public institutions to begin procuring electric vehicles for official use as a way of setting an example to other users.
The announcement was made on June 11, 2026, when Minister for Finance, Ambassador Khamis Mussa Omar, presented the Sh62.3 trillion national budget, which included a range of tax measures aimed at promoting electric mobility.
Following the budget presentation, suppliers and distributors of electric vehicles have acknowledged that the exemption is likely to reduce retail prices, making the technology more accessible.
Ahead of the budget reading, Zera Company Marketing Manager Sam Massawe noted that high import taxes had significantly increased the cost of electric vehicles, limiting their uptake despite growing demand.
He said many Tanzanians were attracted to electric vehicles due to their lower running costs, but high upfront prices remained a barrier.
Mr Massawe made the remarks during the launch of an electric vehicle charging station in Dar es Salaam, an event officiated by Minister for Energy Deogratius Ndejembi.
Reacting to the Government’s latest decision, Mr Massawe said the tax relief would have a positive impact on the market and encourage wider adoption.
“As I said yesterday, the biggest burden for citizens was taxation. With what the Government has done, I believe affordability will improve for many people, and you will be surprised by how quickly these vehicles will be adopted in the country,” he said.
He added that electric vehicles are relatively easy to maintain, with lower servicing costs compared to fuel-powered alternatives due to fewer mechanical components.
Motorcycle taxi operator Rashid Mwihava, a resident of Mkonze, said electric motorcycles were efficient and convenient, noting their quiet operation and reduced running costs.
Mr Mwihava, who owns an electric motorcycle, said he no longer experienced long queues at fuel stations and was less affected by rising fuel prices, unlike many of his colleagues in the transport business.
