TANZANIA TAXES; TANZANIA REVENUE AUTHORITY OVERALL TAXES

Other TRA Taxes

As well as income tax, VAT and import duties, a number of other taxes are also collected by the Tanzania Revenue Authority. These include the following: Excise duty Excise duty is a special duty designed to raise extra revenue, provide disincentives for consumption of some environmentally or socially detrimental goods, and impose extra taxes on a selection of luxury goods. The tax is levied on the ex-factory price or the import price and so is included in the price of the product on the market. The specific rates are adjusted upwards to account for inflation each budget. Subject to the Finance act of 2005 all specific exercise duty rates will be annually adjusted in accordance with the project inflation rate. Rates of excise (2005/06) are as follows: Soft Drinks Soft drinks - Tsh 41.50 per litre Alchoholic beverages Beer - Tsh 256 per litre Wine (domestic grape content less than 75%) - Tsh 820.0 per litre Spirits - Tsh 1,216.0 per litre Tobacco products Without filter and with the domestic tobacco content exceeding 75% - Tshs 4,170.0 per 1000 With filter and domestic tobacco content exceeding 75% - Tsh 9,840.0 per 1000 Other -Tsths 17,870 per 1000. Cut rag/filter - Tsh 9,025.0 per Kg Petroleum products Gasoline premium (MSP) (Petrol) - Tsh 146 per litre Gasoline regular (MSP) - Tsh 135 per litre Jet A-1 fuel - Nill Illuminating kerosene - Tsh 122 per litre Diesel oil (industrial; heavy black, for low speed marine and stationary engines) (IDO) - Tsh 201 per litre Gas oils (Diesel) - Tsh 127 per litre Residual oils (Heavy Fuel Oil) - Tsh 13.5 per litre Petroleum gases (LPG) - Tsh 114 per Kg Communications services Mobile phone services - 5% Pay-to-view satellite television services - 5% Vehicles Vehicles designed to carry less than 10 passengers and greater than 2000cc - 10% Plastic bags Plastic bags - 15% Fuel Levy Fuel levy is an extra tax on fuel of Tsh 90 per litre. The revenue collections from this tax are allocated straight to the Road Fund, which in turn allocates them to TANROADS and to Local Governments for the sole purpose of road rehabilitation and maintenance. Skills Development Levy The Skills Development Levy is a tax on payroll, which is paid by employers who employ more than four employees. It is levied at 6% of the payroll emoluments. Out of this, 2% goes directly to the Vocational Education and Training Authority for the purposes of providing the skills to the workforce that employers require. Agricultural employment is exempted from Skills Development Levy. Stamp duty Stamp duty on legal instruments is a tax on the stamping of such legal instruments to make them recognized in a court of law. The former stamp duty on receipt on business income (which was a turnover tax payable by businesses which are not registered for VAT) was abolished in July 2004.