Mineral Royalty Tanzania 2026: Who Pays, When, and Why Miners Say They Pay Twice
How does mineral royalty work in Tanzania after the October 2026 review order? Nothing has changed yet. Royalty stays at 6% of gross value for gold, metallic minerals and rough gemstones, 4% for gold sold to the Bank of Tanzania, and 3% or 1% for other classes. A 1% inspection fee applies before export or domestic use. The review targets double charging, not rates.
On 4 October 2026 the Minister for Minerals, Anthony Mavunde, ordered the Mining Commission, regional authorities and small-scale miners' representatives to review how charges are collected along the value chain. No royalty or levy was abolished and no deadline was set. This guide covers Mainland Tanzania; Zanzibar is addressed separately below.
What changed: the minister's order of 4 October 2026
Small-scale miners in Geita told the Minister for Minerals that they pay royalty and other charges more than once on the same minerals. The Respondents reported on 4 October 2026 that Anthony Mavunde responded by ordering a joint review. The Mining Commission, regional authorities and small-scale miners' representatives must examine the charging system and recommend changes to the Government.
The minister set two limits. He said the Government must collect all revenue legally due to it. He also said compliant miners should not carry unnecessary costs. According to the report, no royalty or levy was abolished at the meeting, and no deadline was announced for the recommendations.
The Citizen covered the same directive on 5 October 2026 under the headline "Minerals minister orders review of small-scale mining levies". Its article body did not load when we checked, so the details below rely on The Respondents and on the primary law.
The reported scope of the review covers five points:
- Consignment tracing: following each lot of minerals from source through transport and processing to final sale.
- Receipt linking: tying each receipt to a specific consignment, so officials can see what was already paid.
- Credit for earlier payments: whether a payment made at one stage can be set against a later charge on the same minerals.
- Charging points: where charges are raised, how receipts are issued and how changes of ownership are recorded.
- Operational differences: ore grades, moving ore to processing sites outside the licence area, and moving carbon to elution plants.
The same report gives the revenue context. The mining sector collected TZS 1.393 trillion in 2025/26, and small-scale miners generate about 40% of sector revenue. In the first quarter of 2026/27 the sector collected TZS 411 billion against a target of TZS 351 billion.
What the law says on mineral royalty and the inspection fee
Mineral royalty in Tanzania is charged under the Mining Act, Cap. 123. In the Revised Edition 2023, royalty sits in section 111 (formerly section 87) and the inspection fee in section 115 (formerly section 90A). The public text on TanzLII is the 2019 revised edition, so we quote its wording and give the 2023 numbers from Zatra's fee register.
Five rules frame every payment:
- Royalty base: royalty is charged on the gross value of minerals produced under a licence. Gross value means market value as determined through the Commission's valuation.
- Payer on a sale: where an authorised miner sells to a licensed dealer or broker, the 2019 text places the royalty duty on the dealer or broker.
- Inspection fee: a 1% fee on gross value is payable by any person in possession of minerals before domestic use or export. The 2019 text called it a clearance fee; salt producers are excluded.
- Export gate: a mineral right holder may export only after paying royalty or provisional royalty and the fee due, or giving security the Commission accepts.
- Application: section 2 states that the Act applies to Tanzania Mainland.
Dealers pay "payment in lieu of royalty" on exports and on sales to smelters, refineries, lapidaries and domestic users, under section 88 of the 2019 text. Where royalty cannot be assessed, the Minister may assess a provisional royalty and settle the balance later.
What are the mineral royalty rates in Tanzania?
The rates below are quoted from Zatra's fee register at 26 September 2026, with the register ID for each line. The Finance Act, 2026 did not change any royalty or inspection fee rate.
| Register ID | Charge | Rate | Legal basis |
|---|---|---|---|
| F0624 | Royalty: gemstones and rough diamonds; metallic minerals (copper, gold, silver, platinum group) | 6% of gross value | Mining Act Cap. 123 R.E. 2023 s.111(1) |
| F0624 | Royalty: uranium | 5% | s.111(1) |
| F0624 | Royalty: gold sold at refinery centres or to the Bank of Tanzania | 4% | s.111(1) as amended by Finance Act No. 6 of 2024 s.59 |
| F0624 | Royalty: other minerals, including building and industrial minerals | 3% | s.111(1) |
| F0624 | Royalty: cut and polished gems; salt; coal for industrial use; phosphate or limestone for fertiliser | 1% | s.111(1) |
| F0625 | Inspection fee | 1% of gross value, before export or domestic use | s.115(3) to (5) |
| F0627 | Domestic Gold Purchase Programme concession | Royalty 4%; inspection fee 0%; VAT zero rating | Finance Act No. 6 of 2024 ss.57, 59, 61 and 109 |
The Bank of Tanzania confirmed the gold concession in its public notice on the Domestic Gold Purchase Program of 1 October 2024. It lists "Royalty fees 4% instead of 6%" and "Inspection fees 0% instead of 1%". Clyde & Co's Finance Act 2024 summary reports the same two changes for gold supplied to the Bank.
What other charges sit on a mineral sale?
Royalty and the inspection fee are the two charges the review is mainly about. Three more lines can apply to the same transaction:
- HIV Response Levy (F0626): 0.1% of gross value, paid with royalty, under section 113A added by the Finance Act No. 11 of 2025 from 1 July 2025.
- Withholding tax on purchases from PML holders and artisanal miners (F0629): 2%, an income tax charge administered by TRA, not by the Commission.
- Service levy (F0630): 0.25% of turnover under the Local Government Finance Act, Cap. 290, collected by councils. Whether and how a council charges it at a mineral market is local practice we could not confirm.
PwC's Tanzania tax summary, reviewed on 9 September 2026, reports the 0.25% service levy rate on turnover of corporate bodies. Licence fees are separate again. A mineral dealer licence (F0622) costs a USD 200 application fee and USD 1,000 for gold, metallic minerals and coloured gemstones. A broker licence (F0623) costs TZS 50,000 to apply and TZS 200,000 to issue.
Who pays the royalty: the miner, the broker or the dealer?
The answer depends on who holds the minerals when the charge falls due. The Act and regulations give three positions:
| Person | Royalty duty | Inspection fee duty | Source |
|---|---|---|---|
| PML holder or other mineral right holder selling its own output | Pays royalty on gross value of minerals produced under the licence | Pays if it holds the minerals at export or domestic use | Mining Act 2019 text ss.87(1), 90A |
| Licensed broker buying from an authorised miner | Pays the royalty on that purchase | Pays if in possession before domestic use | Mining Act 2019 text s.87(2) |
| Licensed dealer buying from a miner or broker | Pays the royalty on the purchase, and payment in lieu of royalty on export or onward sale | Pays before export or domestic use | Mining Act 2019 text ss.87(2), 88; GN 2 of 2018 |
| Holder selling gold to the Bank of Tanzania | 4% royalty | Exempt | F0627; BoT notice of 1 Oct 2024 |
The dealer licence form in the Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018, GN 2 of 2018 states that the licensee is liable for payment in lieu of royalties on all minerals bought, sold, received or exported. Brokers may not export. Our mineral dealer licence guide explains the classes and the 25% Tanzanian shareholding rule.
When and where is mineral royalty paid?
The law ties payment to a sale, a use or an export, not to a calendar date. In practice the charge falls at one of four points.
At the mineral market or buying station. Section 27C of the 2019 text requires anyone buying or selling minerals to do so at the Tanzania Mineral and Gem Houses. Where none exist, the Commission sets up buying stations and licenses brokers to trade there. Mining licence and special mining licence holders may sell at a market of their choice. For small-scale gold sold at these markets, the royalty falls due on that sale.
Before sale, for industrial and building minerals. The Mining (Minerals and Mineral Concentrates Trading) (Amendment) Regulations, 2026, GN 84 of 2026, published on 20 March 2026, added regulation 13H. Holders of a mineral right, broker or dealer licence, or temporary permit for industrial and building minerals must declare production on Form MTF 23. They then pay royalty and inspection fee before sale or consumption. If production falls short, the excess paid is carried forward under regulation 13I.
At the Bank of Tanzania or a refinery. Gold sold to the Bank under the Domestic Gold Purchase Program pays 4% royalty and no inspection fee. The register line F0624 also applies the 4% rate to gold sold at refinery centres. The Bank's notice says payment follows the fire assay report from an approved refinery.
Before export. No export permit is issued until royalty or provisional royalty and the fee are paid. Under GN 2 of 2018, the Commission examines, weighs and seals the minerals, and a broken seal voids the permit. Our gold export guide covers that file.
Every Mainland charge is billed against a GePG control number. Under regulation 13H, the authorised officer calculates the amount, issues the control number and activates the point-of-sale machine once payment is made.
How do receipts and consignment tracking work today?
The current paper trail has three layers, and the review is about joining them up:
- The payment receipt: issued against the GePG control number for royalty, inspection fee and levy. Form MTF 23 records the receipt number, mineral type and amounts.
- The dealer's minerals register: regulation 10 of GN 2 of 2018 requires a register in Form MTF.7 for each mineral, written up immediately after every receipt, dispatch or disposal. A certified copy goes to the Commission by the third day of each month.
- Movement and storage rules: regulation 11 requires minerals in transit to go to the prescribed destination without delay by the most direct route. Dealers in precious minerals keep stock only at the licensed place of business or an approved secure location.
What the regulations we read do not provide is a rule that links a receipt to a numbered consignment and follows it from pit to plant to buyer. That gap is the one the miners described. It is also why the Commission's inspection visits ask for registers, receipts and production records together.
Why do small-scale miners say they pay twice?
The complaint, as reported, has three parts. First, ore or concentrate is often moved from the licence area to a processing site elsewhere, because there is no plant on the licence. Ownership does not change, but officials at the next point may still demand payment.
Second, receipts from different stages are not clearly linked to the same lot. An officer at a checkpoint or market cannot easily see that royalty was already paid. Third, in gold processing, carbon loaded with gold is sent to elution plants, which adds another movement and another chance of a second charge.
The law points to one royalty per mineral sale or use, not one per movement. Section 87 charges royalty on the gross value of minerals produced, and the inspection fee falls before export or domestic use. Where a miner has evidence of an earlier payment for the same minerals, a second demand is a matter to raise with the Commission in writing. A disputed assessment, a seizure or a prosecution should go to an advocate.
What may the review change, and what does it not change?
Until the Government acts on the recommendations, every rate and duty in this guide stays in force. The table separates what is open from what is settled.
| Area | Status at 8 October 2026 | What the review may bring |
|---|---|---|
| Royalty rates (F0624) | In force; set by the Act, changed only by Parliament | Not in the reported scope |
| Inspection fee 1% (F0625) | In force | Not in the reported scope |
| Charging points along the chain | Several, by practice and regulation | Fewer or clearer points; possible regulation changes |
| Receipt to consignment link | No rule found in the regulations we read | A receipt tied to a numbered lot |
| Credit for earlier payment | Only the regulation 13I carry-forward for industrial and building minerals | Credit of earlier payments against later charges on the same minerals |
| Deadline for recommendations | None announced | Unknown |
Rate changes need an Act of Parliament, usually the annual Finance Act. Procedure changes can come by regulation, as GN 84 of 2026 shows. The Finance Act, 2026 added section 149A, creating a Mineral Survey Fund financed by 10% of royalty and fee revenue. That moves money after collection; it does not change what miners pay. The Ministry's news page carries the same 10% decision.
Who is affected
- Primary Mining Licence holders: a licence class open to Tanzanians only, held by small-scale miners who sell at mineral markets and move ore to plants.
- Licensed brokers: who buy from miners at markets and carry the royalty duty on those purchases.
- Licensed dealers and exporters: who pay in lieu of royalty and the inspection fee before export.
- Processing plant and elution plant operators: who receive ore and carbon from several licence holders and need clean records of what was paid.
- Quarry and building materials producers: already on the GN 84 prepaid system for industrial and building minerals.
- Regional and council officials: who run checkpoints and markets and will help design the new rules.
Licence holders are outside the Business Licensing Act for mining itself, but a dealer or broker company still needs its Mining Commission licence class and a TIN in place.
Worked example: a 100 gram gold lot from a Geita PML
A PML holder in Geita sells 100 grams of gold. For the arithmetic we assume a gross value of TZS 250,000 a gram, so TZS 25,000,000 for the lot. This is not a market price; the Commission publishes the indicative price daily.
| Charge | Register ID | Sale at a mineral market | Sale to the Bank of Tanzania |
|---|---|---|---|
| Royalty | F0624 | 6%: TZS 1,500,000 | 4%: TZS 1,000,000 |
| Inspection fee | F0625 / F0627 | 1%: TZS 250,000 | 0%: TZS 0 |
| HIV Response Levy | F0626 | 0.1%: TZS 25,000 | 0.1%: TZS 25,000 (to confirm) |
| Total Mining Commission charges | TZS 1,775,000 (7.1%) | TZS 1,025,000 (4.1%) | |
| Withholding tax, if the buyer withholds | F0629 | 2%: TZS 500,000 | Confirm with TRA |
| Service levy, if the council charges it | F0630 | 0.25%: TZS 62,500 | Confirm with the council |
- The cost of a second charge: if royalty, inspection fee and levy are demanded again on the same 100 grams, the miner pays another TZS 1,775,000. Total charges reach TZS 3,550,000, or 14.2% of the lot's value.
- The Bank route saves: TZS 750,000 on this lot against the market route, before any difference in price or refining terms.
- Withholding is different: the 2% is an income tax charge, and how it is credited depends on the miner's TRA position.
For example, a miner with 20 such lots a year would face TZS 35,500,000 in Commission charges at the market rate. One duplicated lot adds TZS 1,775,000 that the review aims to stop.
Does the Mainland Mining Act apply in Zanzibar?
No. Section 2 of the Mining Act states that it applies to Tanzania Mainland. The Mining Commission, the royalty rates and the review ordered on 4 October 2026 are Mainland matters.
Zanzibar regulates minerals under its own law. The Citizen reported in November 2024 on a proposed Zanzibar mining law. We could not confirm its enactment, its royalty rates or its regulator, so Zanzibar charges are unknown in this guide. Anyone dealing in minerals in Zanzibar should confirm the position with the Revolutionary Government of Zanzibar before trading.
What to do now
- Keep every receipt with its lot. File each GePG receipt with the weight, mineral, date, licence number and destination of the lot it covers.
- Record each movement. Note when ore, concentrate or carbon leaves the licence area, where it goes and that ownership has not changed.
- Ask for the basis of any second demand. Where an officer demands royalty already paid, ask in writing which section applies and show the earlier receipt.
- Dealers: tidy the register. Keep Form MTF.7 entries current and send the monthly copy to the Commission by the third day.
- Quarry producers: use Form MTF 23. Declare production, pay against the control number before sale and track any carry-forward.
- Price the Bank route. Compare the 4% royalty and 0% inspection fee with your current market price and refining terms.
- Feed the review. Give documented cases of double payment to your miners' association, so they reach the joint team.
- Route disputes to an advocate. A contested assessment, a seizure or a prosecution needs legal advice before you respond.
Key dates
| Date | Event | Source |
|---|---|---|
| July 2024 | Finance Act No. 6 of 2024: 4% royalty and inspection fee exemption for gold supplied to the Bank of Tanzania | F0627; Clyde & Co, 8 Jul 2024 |
| 1 October 2024 | Bank of Tanzania notice launching the Domestic Gold Purchase Program | BoT public notice |
| 1 July 2025 | HIV Response Levy of 0.1% in force | F0626 |
| 20 March 2026 | GN 84 of 2026 published: prepaid royalty and inspection fee for industrial and building minerals | GN 84 of 2026 |
| 1 July 2026 | Finance Act, 2026 in force: Mineral Survey Fund, no change to royalty or inspection fee rates | Finance Act, 2026, s.55 |
| 4 October 2026 | Minister orders joint review of mineral charging | The Respondents |
| No date set | Recommendations due to the Government | Not announced |
Watch the Ministry of Minerals and the Mining Commission for any new regulation or circular that follows the review.
How Zatra helps
Our sector permits service prepares Mining Commission files for dealer and broker licences, renewals and export permits. Our tax and regulatory compliance service sets up the receipt, register and withholding records that show what was paid on each lot. The Tanzania mining hub links our other mining guides, including the older royalties and export controls overview. Packages are on our pricing page.
Government charges, including royalty, the inspection fee and licence fees, are paid by the client to the authority at the official rate against its GePG control number. They stay separate from Zatra's professional fee. The Mining Commission decides every assessment and licence. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. Prosecutions, seizures, disputes and legal opinions go to the advocate on our team.
Sources and status
Accurate as at 8 October 2026.
- Mavunde orders review of mining charges: The Respondents, 4 Oct 2026. Accessed 8 Oct 2026.
- Minerals minister orders review of small-scale mining levies: The Citizen, 5 Oct 2026, headline only read. Accessed 8 Oct 2026.
- Mining Act, Cap. 123, revised text at 30 Nov 2019: TanzLII. Accessed 8 Oct 2026.
- Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018, GN 2 of 2018: TanzLII, published 10 Jan 2018. Accessed 8 Oct 2026.
- Mining (Minerals and Mineral Concentrates Trading) (Amendment) Regulations, 2026, GN 84: Government Notice published 20 Mar 2026, copy hosted by FB Attorneys. Accessed 8 Oct 2026.
- Public notice: Domestic Gold Purchase Program: Bank of Tanzania, 1 Oct 2024. Accessed 8 Oct 2026.
- The Finance Act, 2026: Tanzania Revenue Authority, commenced 1 Jul 2026. Accessed 8 Oct 2026.
- Tanzania tax update: highlights of the Finance Act 2024: Clyde & Co, 8 Jul 2024. Accessed 8 Oct 2026.
- Tanzania: Corporate, other taxes: PwC Worldwide Tax Summaries, reviewed 9 Sep 2026. Accessed 8 Oct 2026.
- Serikali yaridhia kutenga asilimia 10 ya makusanyo ya madini: Ministry of Minerals, June 2026, headline only read. Accessed 8 Oct 2026.
- How Zanzibar hopes to promote economic growth with mining law: The Citizen, 28 Nov 2024, summary only read. Accessed 8 Oct 2026.
- Tanzania Government Fees 2026 and fee register: Zatra Handbook 06, fees at 26 Sep 2026, lines F0622 to F0630. Accessed 8 Oct 2026.
Figures to confirm before you act
- R.E. 2023 section numbers: ss.111 and 115 come from Zatra's fee register; the public TanzLII text is the 2019 edition with ss.87 and 90A
- 4% rate at refinery centres: in register line F0624; the Bank of Tanzania notice and Clyde & Co confirm the 4% rate for gold sold to the Bank only
- HIV Response Levy on gold sold to the Bank: not confirmed whether the 0.1% applies on that route
- Service levy at mineral markets: the 0.25% rate is confirmed; whether a council charges it on each mineral sale is not
- Withholding tax of 2%: from register line F0629; confirm the credit treatment with TRA
- Revenue figures: TZS 1.393 trillion, TZS 411 billion and 40% are as reported by The Respondents, not read in a Ministry release
- Zanzibar mining law and charges: unknown at the date of writing
- Gold price in the worked example: an assumption for arithmetic, not a market quote
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.
Frequently asked questions
Did the minister cut mineral royalty in October 2026?
No. The order of 4 October 2026 started a review of how charges are collected. The Respondents reported that no royalty or levy was abolished. Rates in the Mining Act stay in force until Parliament amends them.
Is the inspection fee the same as the old clearance fee?
Yes, in substance. The 2019 text of the Mining Act called the 1% charge on gross value a clearance fee in section 90A. The register now lists it as the inspection fee under section 115 of the 2023 revised edition.
Can I get a refund if I paid royalty twice on the same gold?
The Act provides for a refund of any excess once a provisional royalty is finalised; we found no specific route for a duplicated demand. Meanwhile, write to the Mining Commission office with both receipts and lot records. If the Commission refuses, take advice from an advocate before any appeal.
Does a primary mining licence holder need a business licence to sell minerals?
No business licence is needed for mining itself, because miners licensed under the Mining Act sit outside the Business Licensing Act. Buying and selling other people's minerals needs a broker or dealer licence from the Mining Commission.
Who sets the gross value used for royalty?
The Mining Commission. Gross value means market value as determined through its valuation, and the Commission publishes indicative prices. Gemstone sellers also pay a sorting and valuation fee set by regulation.
Can a foreign company pay royalty as a broker?
No. A broker licence is open only to Tanzanians aged 18 or over and local companies. A foreign-held company can trade as a dealer if at least 25% of its shares are Tanzanian-held, and then pays in lieu of royalty.
How do I pay royalty and the inspection fee?
The Commission officer calculates the amount and issues a GePG control number. You pay by bank or mobile money against that number and keep the receipt. For industrial and building minerals, payment comes before sale under GN 84 of 2026.
Will the review change the Mineral Survey Fund?
Nothing reported links the two. The Finance Act, 2026 directs 10% of royalty and fee revenue to the Fund after collection. The review concerns how charges are raised from miners along the value chain.
Sources & regulators
Verify before filing: Rates, forms and thresholds move by Finance Act, Government Notice and portal revision. Confirm the live schedule on the mandate-holder portal before you budget or submit. Law-firm alerts and Big Four notes are discovery only.
- The Respondents: Mavunde orders review of mining charges: The Respondents, published 4 Oct 2026; independent news report, read 8 Oct 2026. Accessed 2026-10-08.
- The Citizen: Minerals minister orders review of small-scale mining levies: The Citizen, published 5 Oct 2026; independent report (headline only read). Accessed 2026-10-08.
- Mining Act, Cap. 123 (revised text at 30 Nov 2019): TanzLII, text as at 30 Nov 2019; primary source, read 8 Oct 2026. Accessed 2026-10-08.
- Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018, GN 2 of 2018: TanzLII, GN published 10 Jan 2018; primary source, read 8 Oct 2026. Accessed 2026-10-08.
- Mining (Minerals and Mineral Concentrates Trading) (Amendment) Regulations, 2026, GN 84 of 2026: Ministry of Minerals GN published 20 Mar 2026, copy hosted by FB Attorneys; primary text, read 8 Oct 2026. Accessed 2026-10-08.
- Bank of Tanzania: Public notice, Domestic Gold Purchase Program: Bank of Tanzania, dated 1 Oct 2024; primary source, read 8 Oct 2026. Accessed 2026-10-08.
- The Finance Act, 2026: Tanzania Revenue Authority, Act commenced 1 Jul 2026; primary source, read 8 Oct 2026. Accessed 2026-10-08.
- Clyde & Co: Tanzania tax update, highlights of the Finance Act 2024: Clyde & Co, published 8 Jul 2024; independent secondary source. Accessed 2026-10-08.
- PwC Worldwide Tax Summaries: Tanzania, other taxes: PwC, reviewed 9 Sep 2026; independent secondary source. Accessed 2026-10-08.
- Ministry of Minerals: Serikali yaridhia kutenga asilimia 10 ya makusanyo ya madini: Ministry of Minerals, June 2026; headline only read 8 Oct 2026. Accessed 2026-10-08.
- The Citizen: How Zanzibar hopes to promote economic growth with mining law: The Citizen, published 28 Nov 2024; independent report (summary only read). Accessed 2026-10-08.
Disclaimer
This article is informational orientation. It is not legal, tax or investment advice and not a government decision. Tanzanian instruments move by Act, Government Notice, Finance Act and portal revision. If a sentence here disagrees with the live mandate-holder, the mandate-holder wins. Zatra Consultants Limited does not issue licences, permits, tax clearances or approvals, and gives no assurance of any regulatory or banking outcome. Professional fees are published only on /pricing/.