DODOMA: THE Tanzanian government has exempted value added tax on edible oil produced using locally grown seeds.
Speaking while presenting the Government’s Proposals on Revenue and Expenditure Estimates for the Year 2026/2027, today in parliament in Dodoma, Ambassador Khamis Mussa Omar said another exemption is a 10 percent customs duty on imported crude edible oil except palm oil, and a 10 percent export levy on crude sunflower oil and its seeds.
Another exemption is a 0 percent customs duty on crude palm oil and 10 percent on intermediately processed crude palm oil (CPO) and a customs duty of 35 percent or 300 US dollars per tonne, whichever is higher, instead of only 35 percent on all types of refined edible oil.
“The government has put in place various tax incentives to encourage agriculture and the use of locally produced oilseeds, ensure the availability of this product to the public at affordable prices, as well as develop and protect local industries that process and produce edible oils.
He said the tax measures currently being implemented include the following: exemption from value added tax on edible oils produced using locally grown seeds.
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“The government, after consulting with various stakeholders including edible oil producers and the Parliamentary Standing Committee on Budget, is proposing to make the following amendments: To impose a customs duty of 10 percent on all types of crude edible oils including crude palm oil and semi-refined palm oil. This measure aims to eliminate the challenge of misdeclaration/misclassification committed by some unscrupulous traders who take advantage of the existing discounts on edible oils palm oil (crudepalm oil) to import semi-refined palm oil.
He said the use of this rate is in line with the policy direction currently used by some East African Community member states, including Kenya and Uganda which impose a customs duty of 10 percent on crude palm oil from outside the Community.
Ambassador Khamis said the government, through the Ministry of Agriculture, will coordinate the issuance of special permits for importers of such oils from abroad. Such permits will be issued after satisfying itself on the investment and production of sunflower, cotton and palm seeds, under the COPRA Regulations of 2026.
“In addition, for the next five years, the Government will continue to provide subsidies for sunflower and cotton seeds along with 2m/- annually with the aim of promoting the production of seeds used to produce edible oils and thus completely eliminating the importation of these oils from abroad.