Tanzania removes taxes on electricity and natural gas to encourage the use of clean energy

DODOMA: TANZANIA has announced the removal of taxes on electricity and natural gas in the transport and domestic sectors and has introduced various tax measures to encourage the use of these products. Speaking during the presentation of the Government’s Proposals on Revenue and Expenditure Estimates for the Year 2026/2027, today, June 11, 2026 in parliament in Dodoma, Dr Khamis Mussa Omar said the measures currently being implemented include Exemption of excise duty based on engine capacity on electric and gas vehicles, Exemption of value added tax on Compressed Natural Gas (CNG) used in vehicles. Others are Value Added Tax Exemption on CNG distribution equipment, including CNG compressors, CNG metering equipment, CNG storage cascades, CNG special transportation vehicles and CNG dispensers, Value Added Tax Exemption on the entire CNG production chain and Value Added Tax Exemption on equipment used in the conversion of the petroleum fuel system to a gas and electricity system in vehicles. ALSO READ: Govt eyes worldclass Dodoma Ambassador Dr Khamis also said that other areas are Value Added Tax Exemption on the import of raw materials used to manufacture gas cylinders for various uses including those used in vehicles, Establishing customs duty relief on electric batteries used by manufacturers or assemblers of electric vehicles and motorcycles. “There is a customs duty relief for assemblers and manufacturers of domestic vehicles, including those that use electricity and gas, in accordance with the East African Community Assembling and Manufacturing of Products Regulations, 2025, to reduce production costs. He also said that the government has proposed to exempt value added tax on equipment to be used in electric vehicle charging stations imported into the country, identified with HS Code 8504.40.00, Reducing customs duty from 25 percent to 10 percent on electric vehicles identified with HS Codes 8702.40.19; 8702.40.22; 8702.40.29; 8702.40.99; 8703.80.90 and 8704.60.90. He also said that the government is continuing discussions with existing automotive assembly plants in the country to provide tax relief to assemblers of electric vehicles in the country and to exempt value added tax on imported LPG smart meters recognized under HS Code 9028.10.00. The relevant exemption will be granted to LPG distributors only. The post Tanzania removes taxes on electricity and natural gas to encourage the use of clean energy first appeared on Daily News . The post Tanzania removes taxes on electricity and natural gas to encourage the use of clean energy appeared first on Daily News .