8 June 2017

Tanzania Scraps Car Licence Fees, to Increase Fuel Levy

Photo: East African Business Week
Fuel station.

Tanzania has abolished the annual motor vehicle licence fee.

Finance minister Philip Mpango told Parliament in Dodoma during the budget speech Thursday that the government will instead increase the petroleum levy.

The government will also give a tax amnesty to motorists who had yet to clear their dues. The minister said the owners can from July 1, drive their vehicles freely on the Tanzania's roads so long as they have fuel to do so.

To recoup the lost revenue however, Dr Mpango said excise duty on petroleum products will be increased by Tsh40 ($0.02) per litre.

"The increase of excise duty is intended to compensate for the loss of revenue resulting from the abolition of the annual motor vehicle license and address the complaints of imposing fee even if the vehicle is out of use," he said.

Similarly, Dr Mpango proposed to raise registration fees for vehicles, motorcycles and tricycles by Tsh50,000 ($22.35).

Budget deficit

The minister said the government will increase spending by 7 per cent to Tsh31.71 trillion ($14.21 billion) giving a budget deficit of 3.8 per cent of gross domestic product.

He said the government plans to borrow Tsh6.17 trillion from domestic markets and another Tsh1.59 trillion from external non-concessional loans.

More on This

Govt to Introduce Clearing Fee for Mineral Exports

Tanzania plans to introduce a 1 per cent clearing fee on the value of mineral exports in 2017/18 (July-June), its… Read more »

Copyright © 2017 The East African. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.