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The Tanzania Revenue Authority (TRA) has provided clarity on the recently introduced reduced Value Added Tax (VAT) rate of 16 percent under the Finance Act 2025, which came into effect on July 1, 2025.
The reduced rate is stipulated under subsection (6) of the VAT Act, Cap. 148.
TRA explained that the new rate will only take effect after a formal public notice is issued by the Commissioner General.
The notice will specify which taxpayers are eligible for the reduced rate and detail the procedures for applying it.
In a statement, Commissioner General Yusuph Juma Mwenda said the Authority is finalizing the legal requirements and will soon inform the public on how the 16 percent VAT will be implemented.
The TRA urged businesses and taxpayers to stay updated through official announcements to ensure compliance once the new rate is in force.