On the historic evening of 13th June 2024, Tanzania’s Minister of Finance took center stage to announce the eagerly anticipated budget for 2024/25. This year’s theme, “Sustainable Economic Transformation through Fiscal Consolidation and Investment in Climate Change Mitigation and Adaptation for Improved Livelihoods,” reflects a bold commitment to economic growth that goes hand in hand with environmental responsibility.

Here are some captivating highlights from the 2024/25 budget;

• Starting 1st July 2024, all services will exclusively be charged in Tanzanian Shillings, marking a significant shift in the financial landscape.
• In a bold move, individual and institutional lenders will be prohibited from imposing high and unreasonable interest rates.
• VAT refunds will become more efficient than ever, with a promise of processing within 30 days.
• The currency point range is set to expand, indicating an interesting development in monetary policy.
• Motor vehicles using compressed natural gas will now carry a new ‘feel levy’, steering us towards a greener future.
• Digital content creators, digital asset transfers, and digital asset owners will now contribute to the economy through the introduction of digital taxes.
• A critical review of exemptions granted to investors is on the horizon, ensuring fairness and accountability.
• The agricultural, fishing, and forestry sectors will see a new 2% tax on all income derived, planting seeds for future growth.
• In this pivotal moment, as economies worldwide navigate through turbulent times and climate change looms large, Tanzania stands firm with a plan that promises robust economic recovery and a deep respect for our planet. The budget presented is not just a collection of numbers; it’s a roadmap to resilience, a promise to strengthen our economy while nurturing the environment that sustains us.

For further inquiries or assistance, please reach out to us at hello@porttownlegal.tz 

You can download the insight here Budget highlight PTL