Zanzibar Unveils Bold Tax Reforms to Boost Local Economy and Protect Public Health
Zanzibar’s Revolutionary Government has announced comprehensive tax increases on imported products, targeting multiple sectors to strengthen local industries and create new employment opportunities.
Key Tax Proposals Set to Transform Economic Landscape
The government’s strategic tax plan focuses on several critical areas:
Local Production Support
– Increased tax on imported chicken and fish from Sh300 to Sh1,000 per kilogram
– Expected to generate Sh7.25 billion in revenue
– Aims to boost local farming and fishing sectors
Health and Environmental Initiatives
– New Sh1,000 per kilogram tax on imported sweets, biscuits, and chocolates
– 120% excise tax on shisha flavors to combat youth consumption
– Sh50 per liter infrastructure tax on imported water
– 5% tax on plastic product imports to support environmental conservation
Infrastructure and Revenue Generation
– Road license fees increased from Sh38 to Sh100 per liter
– Road development levy raised from Sh100 to Sh200 per liter
– Projected to collect Sh35.75 billion for infrastructure improvements
Additional Tax Adjustments
– Excise taxes on imported wine and spirits increased to Sh6,000 per liter
– Maintained 15% tax on imported vehicles aged 5-10 years
The government emphasizes these measures are designed to protect local industries, safeguard jobs, improve public health, and ensure sustainable economic growth while generating significant revenue for critical national funds.
