Tanzania’s 2024/2025 Finance Act: Tax reforms set to boost agriculture

Published October 23, 2024

TANZANIA – The recent passage of Tanzania’s 2024/2025 Finance Act aims to uplift the agricultural sector through vital tax reforms and regulatory updates.

On June 26, 2024, key stakeholders from the seed and horticulture industries gathered in Arusha for a seminar to discuss the implications of these reforms.

Organized by PricewaterhouseCoopers (PwC), along with support from the Embassy of the Kingdom of the Netherlands, the event brought together industry leaders to understand the new landscape.

The seminar’s main focus was Tanzania’s National Budget and its direct impact on agriculture. Experts from PwC, including Joseph Lyimo and Neema Henry Nyandoa, guided participants through the legislative changes brought about by the Finance Act.

The presentation provided a detailed economic overview, emphasizing the country’s revenue performance and its effect on agricultural stakeholders.

Joseph Lyimo noted, “These reforms are crucial in ensuring that businesses, especially in agriculture, can thrive under the current economic conditions. We expect the updates to streamline operations and improve tax compliance.”

One of the key areas discussed was the recovery of input tax, a topic of interest for those in the seed, potato, and horticulture sectors.

The new policies were presented as opportunities for businesses to optimize their tax strategies and remain competitive in the global market.

The second session covered critical regulatory updates that will shape Tanzania’s agricultural future. Representatives from various regulatory bodies, including the Tanzania Bureau of Standards (TBS) and the Occupational Safety and Health Authority (OSHA), outlined changes in safety regulations, plant health standards, and pesticide usage.

OSHA’s new fire safety requirements and quality control measures were highlighted as part of the government’s commitment to improving safety in agriculture. TBS representatives also discussed plant health regulations and their implications for export businesses.

“These updates are necessary for improving product quality and ensuring that Tanzanian produce meets international standards,” said a regulatory representative at the seminar.

Tanzania’s fresh produce sector is undergoing rapid growth, with the market for fruits and vegetables currently valued at USD 2.17 billion.

Projections suggest this figure will reach USD 2.98 billion by 2029, fueled by a shift toward healthier eating habits worldwide. This trend opens new doors for Tanzanian producers seeking to expand their market reach.

Recently, Tanzanian exporters secured a USD 2.8 million deal with the United Kingdom to supply fresh produce.

Anthony Chamanga, the chief development manager at TAHA, confirmed the agreement, saying, “This deal is a major milestone for Tanzanian agriculture. The UK’s growing demand for fresh produce offers a significant opportunity for our farmers.”