Excise Duty Tanzania: Rates, Licences, Stamps and Returns for 2026/27

This guide covers the law after the Finance Act 2026, who must be licensed, the main rates, electronic tax stamps, penalties, indexation, Zanzibar and a worked computation in shillings.

What the law says about excise duty

Excise is a tax on selected goods and services, charged in addition to VAT. In Mainland Tanzania the governing law is the Excise (Management and Tariff) Act, Cap. 147. Three parts of it do most of the work.

• The Fourth Schedule. It lists excisable goods by tariff heading and gives each line a rate. TRA's Taxes and Duties at a Glance 2025/26 states the general rule: goods in the Fourth Schedule are taxed at the Schedule rates.
• Section 126. It imposes excise on services and on some imported goods outside the Schedule. Electronic communication, pay television, money transfer fees, used vehicles and used spare parts sit here. The Finance Act 2026 renumbered its subsections.
• The licensing provisions. No person may manufacture excisable goods without a licence. TRA's application form cites sections 8 and 16 of the Act.

The current amending law is the Finance Act, 2026, Act No. 2 of 2026. It was assented to on 30 June 2026 and came into force on 1 July 2026. Part IV, sections 7 to 10, amends Cap. 147. The Finance Act, 2025 made the previous round of changes, including pay television at 7 percent.

Procedure, penalties, interest and objections fall under the Tax Administration Act, Cap. 438. TRA administers both Acts on the Mainland. Our parent guide to import duty, VAT and excise shows how excise sits on a customs entry.

Who is affected

TRA's excise duty page names the persons who owe the duty:

• Local manufacturers of scheduled goods: soft drinks, juices, bottled water, cement, tobacco products, confectionery, cosmetics and others.
• Importers of scheduled goods, used vehicles, used spare parts, furniture and other listed items.
• Buyers who resell goods that were produced or imported free of duty.
• Service providers: mobile network operators, pay television broadcasters, banks, mobile money operators and payment service providers.
• Non-resident digital suppliers of those services to unregistered Tanzanian residents, from 1 July 2026.

Retailers and distributors are also affected. They must not handle goods that lack a valid electronic tax stamp where one is required.

What changed on 1 July 2026?

The Finance Act 2026 made six changes that matter to most excise payers. EY's analysis of 17 July 2026 reads them the same way.

Motor spirit, gas oil and kerosene rates were not changed. Neither were the rates on plastic bags, airtime, pay television and money transfer.

Who must hold an excise licence?

Every manufacturer of excisable goods needs a licence from TRA before production starts. TRA's form, Application for a Licence to Manufacture Excisable Goods (ITX258.01.E), asks for:

• the company's TIN and VRN, and the TINs and bank details of each director;
• the factory address, a sketch map and a local government letter confirming the location;
• proof of the right to occupy the premises and a valid business licence;
• the products with HS codes, raw materials and suppliers, projected production and pack sizes;
• a production flow chart and an approved input-output ratio;
• clearances from TBS and any other product regulator;
• office space at the factory for TRA officers, and a TRA inspection report.

Section 8 of the R.E. 2019 text requires a separate application for each factory and each class of goods. The form names no fee, and the fee register lists none, so treat any charge as one TRA assesses on filing. Register for tax first; our guide to TIN and VAT registration covers that step.

Importers do not hold a manufacturing licence. They pay excise on the customs entry, before the goods leave customs control. Importers of stamped goods must still register with TRA under the stamp regulations, covered below.

Service providers register with TRA for excise and file monthly. The Act's registration provisions for dealers sit in its later Parts; confirm the current section numbers in the revised edition before citing them.

How is excise duty computed?

There are two methods, and the Schedule line tells you which applies.

• Specific rate. A fixed shilling amount per unit: per litre, per kilogram or per thousand cigarettes. Excise equals the quantity times the rate. The selling price does not matter.
• Ad valorem rate. A percentage of the dutiable value. TRA's guide gives the rates in use as 0, 5, 10, 15, 17, 20, 25, 30 and 50 percent.

For services, TRA's guide defines the dutiable value. For electronic communication it is the service charge or voucher face value. For pay television it is the subscription or service fee. For money transfer it is the fee charged.

For locally made goods, duty falls due when the goods leave the licensed premises. For imports, TRA's excise page states that duty falls due "at the time immediately before the article ceases to be subject to customs control".

The base for ad valorem excise on imports is set by the Act's taxable value provisions. We could not read those sections in the current revised edition this session, so confirm the base with TRA before pricing a shipment.

Excise on an import also enters the VAT base. Section 9 of the VAT Act adds every tax and levy except VAT to the customs value (NEW-03-27). Excise therefore attracts VAT at 18 percent (F0239).

What are the main excise rates for goods?

The specific rates below apply from 1 July 2026. They are taken from section 10 of the Finance Act 2026 and the fee register. PwC's Worldwide Tax Summaries, last reviewed 9 September 2026, give the same figures.

Ad valorem goods include disposable plastic bags at 50 percent (F0258) and cosmetics, perfumes and hair products at 15 percent (F0252). Imported furniture and fireworks pay 25 percent (F0254). Ice cream and sausages pay 5 percent if local and 10 percent if imported (F0255).

New lines from 1 July 2026 include imported plastic or rubber footwear at 10 percent and imported artificial flowers at 20 percent. Electro-thermic domestic appliances under 8516.79.00 pay 10 percent, local or imported (F0253, F0327).

The gap between local and imported rates is deliberate. Imported bottled water pays 36 percent more than local water. Juice from other sources pays about 26 times the rate for juice made from domestic fruit.

Fuel also carries the road and fuel toll of TZS 523 a litre on petrol and diesel (F0260). That is a separate charge under Cap. 220, not excise. Our note on EWURA fuel prices for October 2026 shows how both enter the pump price.

How are motor vehicles taxed for excise?

Vehicles carry two layers of excise: one by engine capacity and, for used imports, one by age.

For example, a used 1,800 cc saloon aged 12 years pays 5 percent for its engine and an additional 35 percent for its age. On a dutiable value of TZS 20,000,000, that is TZS 1,000,000 plus TZS 7,000,000. Import duty and VAT come on top.

Our guide to importing used goods and vehicles covers the customs side.

What excise applies to mobile money, airtime and pay TV?

Three service rates sit in section 126, as renumbered in 2026:

• Electronic communication: 17 percent of the dutiable value, covering voice, SMS and data (s.126(7), F0250).
• Pay television: 7 percent, covering satellite, terrestrial and cable subscriptions (s.126(8), F0251). The Finance Act 2025 raised this from 5 percent.
• Money transfer and payment fees: 10 percent of fees charged by banks, financial institutions, mobile money operators and licensed payment providers (s.126(14), F0251).

The provider charges the excise, collects it from customers and pays it to TRA. The excise is on the fee, not on the amount sent. A TZS 2,000 transfer fee carries TZS 200 of excise.

TRA's guide also lists a mobile money withdrawal levy of TZS 10 to TZS 2,000. That is a separate levy, not excise. Agents and merchants should read our guide to mobile money agents and merchants.

From 1 July 2026, a non-resident that supplies these services online to a resident who is not registered for them owes the excise itself. It must register, file and pay under section 126(4) and (5) (NEW-02-36).

When are excise returns and payments due?

TRA's guide, item 9.0(b), and its paying taxes page both set the deadline: return and payment by the 25th day of the month after the month concerned. The return is filed online and the duty paid against a GePG control number.

TRA's older page on returns by manufacturers of scheduled articles adds two first-time duties:

• an initial return within 21 days of starting to manufacture a scheduled article;
• written notice of any change to that information within 15 days.

The same page still shows a monthly deadline of the last working day of the following month. The later TRA guide sets the 25th, so file by the 25th.

The return reports quantities removed, selling prices and duty by Schedule line. Keep the stock records, EFD receipts and stamp reconciliations that support it. Our guides to the monthly VAT return and EFD receipt rules cover the related filings.

What are electronic tax stamps?

Electronic tax stamps (ETS) are secure stamps, each with a code TRA can trace, fixed to every pack of selected excisable goods. The Electronic Tax Stamps Regulations, 2018, GN 16 of 2018, are made under section 122 of Cap. 147.

TRA's ETS page lists bottled water, juices, beverages, cigarettes and film and music products among the stamped goods. The list "may be changed from time to time". The rules:

• Registration. No person may make, import or deal in stamped goods without a TRA registration certificate (reg. 7).
• Ninety days' notice. Apply for stamps at least 90 days before manufacture or import (reg. 10(2)). File a forecast of annual needs at least 90 days before each financial year (reg. 11).
• Where to fix them. Local goods are stamped at the factory after packaging. Imports are stamped at an approved place within 14 days of customs clearance (reg. 14).
• Payment. The applicant pays for stamps once the Commissioner approves the order. The price is not published on the page.
• Accounting. Wastage up to 1 percent is allowed. TRA charges duty on unaccounted stamps at the highest excise rate.

The stamp charge is a cost per stamp, separate from the excise itself. The Citizen reported on 15 September 2026 that manufacturers were seeking lower ETS rates as the stamp tender came to an end. Budget for the charge TRA confirms in writing.

How are specific rates adjusted for inflation?

Section 126(3), as substituted by the Finance Act 2026, adjusts specific rates every year. The adjustment equals the year-on-year actual inflation rate for the period ending March, plus 2 percent (F0331). EY notes that this replaces the earlier three-year cycle.

The 2026 Schedule already shows the effect. Cement moved from TZS 20 to TZS 21.60 a kg, and filter cigarettes with domestic tobacco from TZS 35,310 to TZS 38,154.80 per thousand. Both are rises of about 8 percent. Local bottled water stayed at TZS 56.00.

The Act does not fix a single date for the next adjustment that we could confirm. Expect new rates with the budget that takes effect on 1 July 2027, and reprice contracts and price lists then.

What penalties apply?

Late filing, late payment and false returns fall under the Tax Administration Act. Stamp offences fall under the 2018 Regulations.

Goods without valid stamps can also be seized, and serious cases are prosecuted. A seizure or a charge goes to an advocate at once.

How does excise work in Zanzibar?

Excise is not a Union matter. Zanzibar has its own Excise Duty Act No. 8 of 2017, which replaced Cap. 147 for supplies made in Zanzibar. PwC's 2017 tax alert records that the Act came into force on 4 July 2017.

The Zanzibar Revenue Authority administers it, with filing through its ZIDRAS portal. ZRA's page states that excise is "charged on the imported excisable goods and exercisable services". Rates sit in the First and Second Schedules of the Zanzibar Act.

Auditax International's note of 15 July 2025 gives the 20th for local services. PwC's 2017 alert gave the 10th for returns and the 15th for payment. Confirm the date with ZRA.

The 2018 stamp Regulations state that they apply to Zanzibar too, although Zanzibar now has its own excise Act. A Zanzibar bottler should confirm with ZRA which stamp regime applies. See our guides to Union and non-Union taxes and Zanzibar VAT.

Worked example: a bottler's September 2026 return

Take Pwani Springs Ltd, a licensed Mainland bottler. In September 2026 it removes from its factory three products, all made locally.

The return and payment of TZS 41,052,000 are due by 25 October 2026. The ETS charge on every bottle is paid separately when stamps are ordered.

Had the same volumes been imported, the excise would rise sharply. The water would cost TZS 30,440,000 at TZS 76.10 a litre. The juice, at the other-juice rate of TZS 275.62, would cost TZS 13,781,000 instead of TZS 534,500.

Now suppose Pwani Springs pays one month late, on 25 November 2026. The penalty under section 89 is the higher of 2.5 percent or TZS 300,000. Here 2.5 percent is TZS 1,026,300. Interest at 8.75 percent a year for one month adds about TZS 299,338. The month's delay costs about TZS 1,325,638.

A telecom operator with TZS 50,000,000 of dutiable airtime and data charges in the same month owes TZS 8,500,000 at 17 percent. A payment provider earning TZS 30,000,000 in transfer fees owes TZS 3,000,000 at 10 percent.

What to do now

1. Classify every product. Match each SKU to its HS code and Fourth Schedule line, and note whether it is specific or ad valorem.
2. Licence before production. File form ITX258.01.E for each factory and class of goods, with TBS clearance and the input-output ratio.
3. Order stamps 90 days ahead. Register for ETS, file the annual forecast and apply for stamps before each production run or shipment.
4. Set the monthly calendar. Diary the 25th for every excise return and payment, and reconcile removals, sales and stamps first.
5. Reprice for 1 July. Update price lists for the 2026 rates now, and plan for indexation again in July 2027.
6. Check imported inputs and vehicles. Model the engine and age bands before buying used vehicles or spare parts.
7. Separate Zanzibar. Register with ZRA for supplies made in Zanzibar, and do not file them with TRA.
8. Act fast on disputes. If TRA assesses or seizes, take advice before the 30-day objection window closes.

Key dates and deadlines

• 1 July 2026: Finance Act 2026 in force: new rates, annual indexation, aged-vehicle bands and excise on non-resident online services.
• 25 October 2026: September 2026 excise return and payment due on the Mainland.
• 25th of every month: return and payment for the previous month.
• Within 21 days of starting production: initial return for a new scheduled article.
• 90 days before manufacture or import: application for electronic tax stamps.
• About 2 April 2027: stamp forecast for the 2027/28 financial year, 90 days before 1 July 2027.
• 1 July 2027: expected next adjustment of specific rates.
• 30 days from a TRA decision: objection deadline, with the deposit paid (NEW-02-19).

How Zatra helps

Zatra's tax compliance desk prepares excise licence applications, ETS registrations and monthly returns. Our tax advisory team classifies products and models the effect of new rates on prices. Our import and export compliance team handles excise on customs entries. The Finance & Tax Control package, USD 3,600 to 4,800 a year, covers the monthly cycle, and a Senior Advisory Session at USD 49 suits a single classification question. Prices are on our pricing page.

Excise, stamp charges, penalties and interest are paid to TRA or ZRA at the official amount against a control number. These government charges are separate from Zatra's professional fee and are never marked up. Our government fees handbook lists the official figures.

TRA and ZRA assess the duty and decide objections. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. Audits are covered by our TRA audit and dispute service and our guide to TRA tax audits. A prosecution, a seizure, an appeal or a formal legal opinion goes to an advocate on our team. See our guide to appealing a TRA assessment.

Sources and status

Accurate as at 11 October 2026.

• The Finance Act, 2026 (Act No. 2 of 2026): Parliament, published by TRA, assented 30 Jun 2026, in force 1 Jul 2026, Part IV ss.7 to 10. Accessed 11 Oct 2026.
• The Finance Act, 2025: Parliament, published by TRA, in force 1 Jul 2025. Accessed 11 Oct 2026.
• Taxes and Duties at a Glance 2025/26: Tanzania Revenue Authority, July 2025, items 9.0 and 12. Accessed 11 Oct 2026.
• Excise duty: TRA web page, undated. Accessed 11 Oct 2026.
• Paying taxes: TRA web page, undated. Accessed 11 Oct 2026.
• Submission of returns by manufacturers of scheduled articles: TRA web page, undated. Accessed 11 Oct 2026.
• Application for a Licence to Manufacture Excisable Goods, ITX258.01.E: TRA form, undated. Accessed 11 Oct 2026.
• Electronic tax stamps: TRA web page, undated. Accessed 11 Oct 2026.
• Electronic Tax Stamps Regulations, 2018, GN 16 of 2018: TanzLII, version of 2 Feb 2018. Accessed 11 Oct 2026.
• Excise duty: Zanzibar Revenue Authority web page, undated. Accessed 11 Oct 2026.
• Tanzania, Corporate, Other taxes: PwC Worldwide Tax Summaries, last reviewed 9 Sep 2026. Accessed 11 Oct 2026.
• Tanzanian Finance Act 2026 analysis: EY tax alert, 17 Jul 2026. Accessed 11 Oct 2026.
• Zanzibar Excise Duty Act 2017: PwC Tanzania tax alert, July 2017. Accessed 11 Oct 2026.
• Understanding excise duty in Zanzibar: Auditax International, 15 Jul 2025. Accessed 11 Oct 2026.
• Manufacturers seek lower ETS rates as tender comes to an end: The Citizen, 15 Sep 2026 (headline only read). Accessed 11 Oct 2026.

Figures to confirm before you act

• Return and payment date: TRA's 2025/26 guide and paying taxes page give the 25th; an older TRA page gives the last working day of the following month
• Fuel excise of TZS 379, 255 and 465 a litre: from PwC (reviewed 9 Sep 2026); the Finance Act 2026 left these lines unchanged; not in the fee register
• Cigarette and tobacco rates: read in Finance Act 2026 s.10 and confirmed by PwC; not in the fee register
• Taxable value for ad valorem imports: the Act's valuation sections were not read this session; confirm the base with TRA before pricing a shipment
• Small cars under 1,000 cc: 5 percent confirmed for assembled units (8703.21.90); EY and the register give 5 percent for unassembled units too
• ETS price per stamp: not published by TRA; confirm in writing before budgeting
• Section numbers: licence sections 8 and 16 are from TRA's form and the R.E. 2019 text; s.126 numbering follows the Finance Act 2026
• Zanzibar dates and stamp regime: confirm with ZRA
• Register lines F0239, F0246 to F0260, F0318 to F0331, NEW-02-06 to NEW-02-36, NEW-03-27: Zatra Handbook 06 register at 26 September 2026; the control number governs on the day of payment

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.