MWE Correspondent
Tanzania’s government has unveiled plans to introduce new levies on imported vehicles and heavy machinery as part of the 2025/2026 national budget.
The initiative aims to regulate imports, promote local industry, and increase government revenue.
Under the proposed scheme, vehicles with engine capacities ranging from 0cc to 1000cc will be subject to a levy of Sh50,000. Vehicles with engine sizes between 1001cc and 1500cc will face a charge of Sh100,000, while those with engines from 1501cc to 2500cc will be levied Sh150,000. Larger vehicles with engine capacities exceeding 2501cc will incur a levy of Sh200,000.
Heavy machinery, including excavators, bulldozers, and forklifts, classified under tariff headings 84.29 and 84.27, will attract a levy of Sh250,000. These charges are designed to discourage the importation of older and less efficient equipment that may not meet environmental or safety standards.
The Parliament of Tanzania will consider this proposal as part of the comprehensive Finance Bill 2025 before the start of the new financial year on July 1. The government expects the levies to generate additional revenue to support key sectors such as infrastructure development, transportation, and energy.
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This policy is part of a wider push by Tanzania to modernize its vehicle fleet and heavy equipment, aligning with environmental sustainability goals by reducing emissions from outdated engines. It also seeks to stimulate the manufacturing sector by making local assembly more competitive.
Industry analysts have noted that while the levies may increase import costs, they could spur growth in domestic industries and encourage the uptake of cleaner, more fuel-efficient technologies. However, some stakeholders caution about potential price increases impacting businesses dependent on imported machinery.
The government has assured ongoing monitoring and evaluation to ensure the levies support economic growth without imposing undue burdens on businesses and consumers.
