Event report
Event Report | National Budget Event
Every year, the presentation of the National Budget draws close attention from the business community, offering an important opportunity to understand government priorities and prepare for the fiscal year ahead.
In that spirit, the French-Tanzanian Chamber of Commerce (FTCC), together with five other business associations, co-organised the 2025/2026 National Budget presentation. This collaborative format—featuring the Switzerland-Tanzania Chamber of Commerce (STCC), British Business Group Tanzania, American Chamber of Commerce in Tanzania, South African Business Forum, and the European Union Business Group (EUBG)—brought new dynamics to the event, allowing for broader dialogue, cross-sector insights, and strengthened business community exchange.
Hosted in partnership with PwC Tanzania, the session provided an analysis of Tanzania’s economic and fiscal roadmap for the coming year, followed by an engaging Q&A session.
Key Economic highlights:
Economic Outlook: Tanzania forecasts a GDP growth of 6.0% in 2025, driven by agriculture, manufacturing, and tourism.
Currency Developments: The Tanzanian Shilling depreciated by 3.9% against the USD. The government reaffirmed the mandatory use of TZS in all local transactions.
Tax revenue: FY24/25 tax revenue reached TZS 21,233 billion (+5.1%), spurred by a 16% increase in customs collections and a 31% rise in domestic tax revenue.
FY25/26 Budget Framework: The total budget is set at TZS 56,490 billion (+14.48%), with 69% allocated to recurrent expenditure and 31% to development spending.
For a comprehensive review of the tax and policy measures, please refer to the full presentation attached. Below, we highlight some of the key changes:
10% withholding tax on retained earnings: this point is expected to have a significant impact on the businesses. We will reach out to gather their views and assess whether further action or representation is necessary.
Reduced VAT rate (16% instead of 18%) on B2C purchases where payment is made on online
Mandatory interfacing of electronic receipt systems with TRA’s system
Mandatory travel insurance (USD 44) for foreign visitors
We warmly thank our members, partners, and PwC Tanzania for their active participation and for raising critical questions. The collaborative nature of this initiative highlights our shared commitment to fostering unity and generating collective insight across the broader business ecosystem.
Find the full presentation attached for more in-depth details.
