The time of the year is here where the government presents the Budget for 2023/2024 and the Finance Bill that supports the same. On June 26 2023, the Parliament of Tanzania approved the National Budget for 2023/2024 amounting to Tanzania Shillings 44.4 Trillion up 7% from last year. I shall examine the Finance Bill of 2023, which is yet to be passed by the Parliament. This piece will consider exclusively the areas of commercial activities of our clients and readers but also relevant for investment and business in Tanzania.

General Business

  • “Change in Control” provision is amended making Tanzania attract again for Private Equity and Venture Capital investments. Section 56 (1) that provides where the underlying ownership of an entity changes by more than fifty percent, the entity shall be treated as realising any assets owned and liabilities owed by it triggering the income tax at the rate of 30%. The new section 56 (5) provides that section 56 (1) will not be applicable for change of ownership because of allotment of new membership interest of the entity or where the change of ownership is solely a result of transfer of resident membership of the entity to another resident person. This provision will encourage investment into Tanzania.
  • The Skills Development Levy rate is proposed to be reduced from 4% to 3.5%. The aim of this proposal is to reduce operational cost to employers.


  • Excise Duty: 20% on games operated by coins, banknotes, bank cards, tokens or by any other means of payment, other than automatic bowling alley equipment.
  • Definition of commercial gaming undertaking is introduced hence broadening the scope of the Gaming Act, including the tax imposition which would include service providers to gaming operators. Commercial gaming undertaking” means any gaming activity which is subject to gaming tax
  • There was an ambiguity for several years on the calculation of gross gaming revenue which in the past was defined to include the winnings paid out, which posed significant financial challenges to gaming operators particularly since the Tanzania Revenue Authority enjoyed strict formalism in interpreting this as it meant higher revenue collections. The new definition is clear in defining the Gross Gaming Revenue as wage or stake minus winnings.
  • The Bill proposes to add a local content requirement for applicants of a license to undertake commercial gaming. The local content requirement is to allocate a minimum of 25% equity shares to a Tanzanian citizen.
  • The Bill proposes to tax Forty Machines Site from 25% of the Gross Gaming Revenue to 18% Gross Gaming Revenue.


  • Withholding Tax is introduced on payments for purchase of minerals made to a Primary Mining License Holder or Artisanal Mining at 2%
  • The Bill proposes to introduce exemption of income tax for amount derived from gain on the internal restructuring of mining companies pursuant to the requirement of a Framework Agreement entered between the Government and investor to form partnership entity. With the ongoing negotiations and restructuring of mining companies to comply with the requirements under the Mining Act, namely the 16% free carried interest of the government, this will be relief for the industry.
  • The BIll proposes that section 90A of the Mining Act be amended to include minerals at the refineries to be taxed a clearance fee of 1% of the gross value of minerals


  • Development Levy on Airtime is scrapped : Section 164A EPOCA repealed

Carbon Trading

  • payments made to a resident person in respect of verified carbon emission reduction at 10%.

If you have specific questions about the Finance Bill and how it will impact your business, please contact me.

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