Parliament passed the 2026/27 Budget on 23 June 2026 (385–8 votes) and adopted the Finance Bill clause-by-clause in the same sitting, taking effect 1 July 2026. The VAT measures largely match what was outlined in the Budget Speech: the 30-day refund deadline with interest on late payment, exemptions on boarding passes, EV charging equipment, aircraft turbojets and tyres, LPG smart meters, dairy packaging, the cooking-oil and cotton-garment exemption extensions, mining Framework Agreement recognition, and the fishing-net and pet-food exemption swaps.
A further round of amendments was added during the 24 June floor revisions, on top of the original Budget Speech package. Foreign digital service providers selling B2C without a physical presence in Tanzania must now register, file returns, and pay tax — confirmed in the Minister's final presentation to Parliament.
The budget is expected to take effect on 1 July 2026, subject to the President of Tanzania signing the Finance Act into law.
Read more in VAT Review's latest coverage on Finance Bill 2026 in Tanzania.
