Tanzania Targets Tax Fairness with VAT Overhaul, Gaming Industry Braces for Impact

(3 Minutes Read)

Tanzania is making bold fiscal moves with a proposed end to VAT exemptions on all gaming-related supplies—an overhaul that could dramatically reshape the gaming landscape. Introduced in the 2025/26 national budget, this reform aims to bring the gaming sector under the same tax regime as other sports, signalling a shift toward broader tax equity and economic sustainability.

Unveiled by Finance Minister Dr. Mwigulu Nchemba in his budget speech to Parliament, the proposal forms part of a sweeping financial strategy that seeks to collect an additional 322 billion Tanzanian shillings (approximately USD 137 million). The move is not just a revenue-raising mechanism; it’s part of a larger plan to bolster government coffers, support industrial development, improve public services, stimulate investment, and enhance social welfare indicators.

The tax shake-up highlights the government’s commitment to applying consistent taxation principles across all sectors. By removing VAT exemptions from gaming supplies—including both local purchases and imports—the administration is signalling that no industry is immune to reforms aimed at fiscal fairness. While the specific items subject to the VAT repeal have yet to be detailed, the cost burden is expected to pass down to end-users, reshaping player behaviours and business models in the process.

However, the budget isn’t solely about increasing tax burdens. It strategically preserves VAT exemptions on goods and services aligned with national development priorities. Products like cooking gas cylinders, pollution-control equipment, and locally printed newspapers remain VAT-free, reinforcing Tanzania’s push toward clean energy, environmental protection, and a knowledge-based economy—all cornerstones of Vision 2025.

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This pivot in tax policy comes at a crucial moment. With Tanzania set to co-host the 2027 Africa Cup of Nations, the government is heavily investing in sports infrastructure. As sports and betting industries become more integrated, taxing gaming becomes both a symbolic and practical tool to tap into their growing financial footprint.

Ultimately, while the gaming sector faces a significant financial challenge under the new budget framework, the broader message is clear: Tanzania is recalibrating its tax system to promote fairness, sustainability, and inclusive growth in line with its long-term national vision.