The Finance Act, 2025

THE FINANCE ACT, 2025 The Finance Act,2025 is now in force and has amended a number of laws, including the below: 1. AMENDMENT OF THE BUSINESS LICENCING ACT, (CAP 101) The Act is amended by adding section 14A which provides on business restrictions for non-citizens. A licensing authority shall not issue a business license to a non-citizen unless such business is allowed for non-citizens. The Minister may, by order published in the gazette specify business activities which shall not be carried out by non-citizens. 2. AMENDMENT OF THE INSURANCE ACT, (CAP 394) The Act is amended by adding section 134A which provides for the mandatory inbound travel insurance, the purpose and the issuance.

The amendments provide as follows: A foreigner entering mainland Tanzania shall upon arrival purchase inbound travel insurance policy at a premium amount of Tanzania Shillings equivalent to 44 United States Dollars, which shall be issued by the national Insurance Corporation or any other registered insurer. The purpose of the insurance is to provide emergency assistance to foreigners for the maximum stay of ninety two (92) days from the date of arrival in the event of medical emergency, loss luggage, emergency medical evacuation. The mandatory inbound travel insurance shall not apply to residents of East African Community Partner State or Southern African Development Community Partners States. 3. AMENDMENT OF THE MINING ACT, (CAP 123). The Act is amended by adding section 113A just after section 113.

The amendment provides as follows: There shall be charged a levy known as HIV Response Levy on minerals at a rate of 0.1 percent of the gross value of minerals, which shall be collected by the mining Commission. 70% of the collected amount shall amount to AIDS Trust Fund established under the Tanzania Commission for AIDS Act, while 30% shall amount to Universal Health Insurance Fund established under the Universal Health insurance Act. The levy shall become due and payable at the time of payment of royalty by persons liable to pay royalty under this Act.

4. TAX ADMINISTRATION ACT, (CAP 438) Persons engaged in the construction and extractive sector are required to give disclosures of their contracts as per the provision below: For purposes of this section, the entity referred to under subsection (1) shall, within thirty days from the date of commencement of the subcontracted works and in the manner as may be prescribed by the Commissioner General, disclose names of the persons, value of the contract, nature of the subcontracted works and the duration of carrying out the works 5.

LOCAL GOVERNMENT FINANCE ACT, (CAP 290) The fees payable to the local government authority is now reduced from 0.3% to 0.25% as shown below All monies derived from the service levy payable by corporate entities or any person conducting business with business licence whose annual turnover exceeds four million shillings at the rate not exceeding 0.25 percent of the turnover net of the value added tax and excise duty 6. MERCHADISE MARKS ACT, (CAP 85) It is now a requirement to indicate the trademark relating to goods imported in mainland Tanzania as per the below amendment: Trademarks relating to goods to be imported in Mainland Tanzania, irrespective of the place of registration, shall be recorded with the Chief Inspector, in the prescribed manner. 7. INVESTMENT AND SPECIAL ECONOMIC ZONES ACT, (ACT NO.

6 OF 2025) The new Investment and Special Economic Zones Act which consolidates two authorities i.e. Tanzania Investment Centre and the Export Processing Zones Authority is amended as follows: The tax incentives granted to an investor holding a certificate in accordance with subsections (1) and (2) shall not include: (a)a vehicle not directly used in the project classified under Identifier Numbers 8702.10.19, 8702.90.19 and Chapter No. 8703 in the International Commodity Identification System, provided that the restriction imposed shall not apply to an investor whose incentive certificate was issued on or before June 30, 2006; (b)imported trailers classified under ISIC Nos.

8716.31.90 and 8716.40.90; (c) vehicles manufactured more than eight years before importation; (d)office equipment, diaries, furniture, sugar, soft drinks, spirits, tiles, vehicles not directly used in the project, food containers, air conditioners, refrigerators, mattresses, cement, mortar, galvanized sheets, PVC and HDPE pipes with ISIC Nos. 3917.23.00 and 3917.21.00 respectively, trailers and electronic equipment imported from abroad; (e)telecommunications, except capital goods for the installation of telecommunications towers. The exemption from customs duty on non-local capital goods shall be granted at 75 per cent, with the investor paying 25 per cent of the duty payable.

Please note that the above list is not an exhaustive list of all amendments passed under the Finance Act, 2025. Disclaimer The views expressed in this paper are those of the author only and should not be considered as an official interpretation, defamatory or interference of any legislation, laws or policies of any country including Tanzania. The contents of this paper should not under any circumstances be reproduced or used without our express written consent. It should not be considered as a legal advice to any of its recipient(s) and should not be relied upon without obtaining further legal advice. We accept no liability for any loss occasioned or suffered due to the contents of this paper.