During the Muslim holy month of Ramadan, value-added tax (VAT) will be removed from Zanzibar’s imported sugar in an effort to make life more affordable.
Traders are also being told by the president “there is no excuse” to hike their food prices.
Sugar shortages mean prices have rocketed over the past three months in Tanzania and in its semi-autonomous islands of Zanzibar.
Their governments say low production is to blame.
Zanzibar’s President Hussein Ali Mwinyi said the government was tackling inflation but that some dishonest traders still kept prices artificially high – including for locally produced cassava, fish, vegetables and fruits.