Tag Archives: Inflation rate

Tanzania Inflation Reaches6.8% In December 2015 Due To Higher Growth And Demand

According to The National Bureau of Statistics of Tanzania (NBS) the Annual Headline Inflation Rate for the month of December 2015 rose to 6.8% from 6.6% in November, 2015.
The National Consumer Price Index (NCPI) which measures the change over time in the cost of a fixed basket of 224 goods and services purchased by a representative sample of households in Tanzania on monthly basis, increased from 150.92 in Dec, 2014 to 161.24 in Dec, 2015. According to the NBS, it follows higher rates of demand from households and international markets which drove the Tanzanian GDP to grow 6.3% in the Q3-2015 thanks to higher activity in construction, transport and mining sectors. Food and Non Alcoholic Beverages Inflation Rate for the Month of Dec 2015 has decreased to 11.1% from 11.2% recorded in Nov, 2015, however, food annual inflation has stabilized at 10.9% in the same period. The 12 months index change for non-food products for the month of Dec, 2015 has increased to 1.8% from 1.2% recorded in Dec, 2015. The Annual Inflation Rate which excludes food and energy for the month of Dec, 2015 has increased to 2.4% from 2.3% recorded in Nov, 2015.

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Posted by on January 20, 2016 in Business News, Tanzania News


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Tanzania Inflation rate August 2015‏

THE inflation rate for last month has remained at 6.4 per cent, the same as it was in July 2015, the National Bureau of Statistics (NBS) announced in Dar es Salaam yesterday.
NBS Population Census and Social Statistics Director, Mr Ephraim Kwesigabo

NBS Population Census and Social Statistics Director, Mr Ephraim Kwesigabo

But, the annual inflation rate for food consumed at home and away from home has decreased to 10.1 per cent in August compared to the previous month, which was at 10.5 per cent, while the 12-month index change for non-food products has slightly increased to 1.7 per cent from 1.4 per cent recorded in July.

According to NBS, the overall index increased to 158.81 last month from 149.31 in August, 2014. The increase in the overall index is attributed to the price increase in non-food items.

The new National Consumer Price Index released by NBS yesterday for last month also indicates that the annual inflation rate, which excludes food and energy for the month of August, has slightly increased to 2.2 per cent from 2.1 recorded in July 2015.

NBS Population Census and Social Statistics Director, Mr Ephraim Kwesigabo, said that basically the increase in month-to-month inflation rates is attributed to the price increase, both in food and non-food items.

“The increase of annual headline inflation rate for the year ending August 2015 explains that the speed of price increase for commodities has increased in the same speed as it was recorded for the year ended July,” Mr Kwesigabo reported.

“The monthly headline inflation rate for the month of August has increased by 0.02 per cent compared to an increase of 0.41 per cent recorded in July,” he said.

He mentioned the non-food items which contributed to the monthly headline inflation rate increase as gas, kerosene, carpets, diesel and petrol.

“The purchasing power of the shilling indicates that currently you cannot purchase the same thing with the same amount of money like in the year 2010,” he remarked.

While the Tanzanian rate has stagnated, in Kenya the rate decreased to 5.4 per cent last month from 6.6 recorded in July and in Uganda the inflation rate decreased last month to 4.8 per cent from 5.4 per cent.

Principal Statistician, Ms Ruth Minja, said that among other things NBS role was to educate as many people as possible through various media to help them understand clearly the issue pertaining to inflation.

“It is crucial for people to read all the details instead of complaining that they do not understand certain things,” she elaborated.

Tanzania’s inflation rate averaged 7.72 per cent from 1999 until 2013. It reached an all-time high of 19.8 per cent in December, 2011 and a record low of 3.4 per cent in February, 2003.

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Posted by on September 9, 2015 in Business News, Tanzania News


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Tanzania Budget 2012/2013 – An Overview


  • Increase Domestic revenues to 18% of GDP in 2012/2013 compared to the likely outturn of 16.9 percent in 2011/2012;
  • Continue with efforts to curb inflation to a single Digit;
  • Maintain a stable and market determinedexchange rate;
  •  Increase Access to Financial Services;
  • Increase real GDP growth rate of 6.8 percent in 2012 from 6.4 percent of 2011;
  •  Increase Credit to private sector to 20% of GDP by end  June 2013 in line with measures to curb inflation;
  •  Improve economic infrastructure, including electricity, roads, railways and ports;
  • Safeguard and sustain achievements realised in the social sector;
  • Maintain foreign reserves to cover 4.5 months of import of goods and services;
  •  Develop the country’s capability to endure economic and financial crisis and effective participation in regional and international arrangement;
  • Strengthen public and pricate partneship (PPP) arrangement with the view to widen opportunities for increamenting development projects;
  • Improve business enviroment for small and medium entreprises and;
  • Strengthen good governance and counterbility.


REVENUE                                                                     Shillings (in Millions)

A. Domestic Revenue                                                   8,714,671

B. Local Govt Auth. (LGAs Own source)                     362,206

C. General Budget Support                                          842,487

D. Foreign Loans and Grants                                      2,314,231

E. Domestic Borrowing                                                1,631,957

F. Non-Concessional Borrowing                                   1,254,092

TOTAL REVENUE                                                        15,119,644


G. Recurrent Expenditure –                                            10,591,805

                       – Services                      2,745,056

                       -Wages and salaries     3,781,100

                      – Other Charges              4,065,649

                      – Ministries                       3,311,399

                       – Regions                            49,701

      – LGAs                               704,549
H. Development Expenditure  –                                               4,527,839
    – Local        2,213,608
    – Foreign    2,314,231

TOTAL EXPENDITURE                                                         15,119,644


The Government targets to collect domestic revenues (excluding LGA’s own source) amounting to Shillings 8,714.7 billion equivalent to 18% of GDP.


1. Infrastructure

  • Electricity; Alocating Tshs.498.9 billion and impremetation of gas pipeline construction project from Mtwara to Dar es Salaam.
  • Transportation; Strengthening Central railways which involve renovation of the train engnes and wagons and development of the port of Lake Tanganyika.
  •  Cean and safe water.
  • Information and Comunications Technology (ICT)
2. Agriculture, Fisheries and Livestock
  • Strengthen the implementation of Kilimo kwanza policy.
  • Industrial Development.
  • Human resources and social services development.
  • Tourism.
  • Financial Services.

3. High Inflation

    • Tanzania is facing several challenges including high inflation rates which declined from 19.8% in december, 2011 to n18.7% in April, 2012. the main causes of high inflation rates are high eectricity tarrif, high prices of oil and food- especially rice and sugar prices. For example during April 2012 food contributed 24.7% while electricity and fuel contributed 24.9% of inflation. Core Inflation, which includes food and enery prices, is still at singledigit of 8.8%


1. The Value Added Tax (VAT) Act, Cap 148

  • Introduction of VAT rate at 10% for selected VAT relieved beneficiaries enjoying special relief under the third schedule of the Value Added Tax Act. To effect private companies, individuals and TIC Certificate holders except those who are enjoying exemptions under the existing agreements. Also to affect Non-Governmental Organizations except those which are providing donations such as food supplies and medicaments to children and orphanage care centers and schools.
  • Electronic Fiscal devices (EFDs) to be VAT exempt.
  • Exempt VAT on various equipments  that will be used for storage, transportation, and distribution of natural gas (Compressed Natural Gas and piped Natural Gas)

2.  The Income Tax Act, Cap 332

  • Complete income tax exemption provided to individuals with turnover of Tshs. 3,000,000 or less;
  • Interest earned by non-residents from banks will now be subject to 10% withholding tax. The proposed measure is intended to create a fair playing field to all taxpayers.
  • Imposing Capital gains Tax on sale of shares of a local company by its parent company or any offshore company. this measure is intended to control tax avoidance malpractice.
  • Exempting Income tax to Holders of Gaming licences in respect of incomes on which tax has been paid under Gaming Act. Abolishing the exemption that is currently provided under section 54(2) of the Income Tax Act to a resident corporation which holds 25% shares or more so that dividends of the corporation will now be taxed at a reduced rate of 5%.
  • Adjust PAYE threshold as a result of enhancement of salary scales from Tshs. 135,000 to Tshs. 170,000. Introduce exemption of Income Tax to the Dar es Salaam Stock exchange (DSE)

3. The Excise (Management and Tariff) Act, Cap 147

      • Abolish Excise duty on Heavy Furnance oil.
      •  introduce Excise Duty on Music and films products (Effective from 1st January, 2013).
      • Abolish exemption of Excise duty on imported non-utily motor vehicles for all beneficiaries. To introduce excise duty of Tshs.83 per liter on imported fruit juices while locally produced fruit juices will attract excise duty of Tshs.8 per liter.
      • Amend the fuel levy exemption that was granted during the 2011/2012 budget for the fuel to be used by the oil and gas explorers to introduce to ntroduce excise duty as it was intended.
      • Soft drinks, beers, spirit, cigarettes and wine duties going up. Excise duty on Natural gas for industrial use at the rate of Tshs. 0.35 per cubic feet.
      • Increase in Excise duty on Airtime from 10% to 12%

4. The Export Levy Act, Cap 196

  • Increasingan export duty on raw hides from 40% or Shillings 400 per kilogram to 90% or Shillings 900 per each kilogram, whicheveris greater.

5. The Gaming Act, Cap 41

  • Increase Gaming Tax for casino from shillings 13% of gross gaming revenue to 15 per cent of gross gaming revenue.
  •  Introduce gaming tax on sports betting at a rate f 6% of the total stakes.
  •  Introduce  gaming tax on ‘SMS Lotteries” at a rate 0f 43%
  • Introduce gaming tax of 15% on internet casino.
  •  Establish clause in the Game of Chance Act which will explicitly state that the Gaming Tax shall be a final tax

6. The Motor Vehicle Registration and Transfer Act, Cap 124

  • Introduce personalised plate numbers for shillings 5,000,000 for 3 years.
  • Registration and transfer charges becomes expensive.
  • Importation of motor vehicles older than 8 years from the year of manufacturer will now be subject to the excise duty of 20%

7. The Airport Departure Service Charges Act, Cap 365

  • Increase in Airport Service Charges; From USD 30 to USD 40 for International travel and from Tshs. 5,000 to Tshs. 10,000 for local travel.

8. East African Develpment Bank (EADB) Act, Cap 231

  • Provide immunity status to the properties owned by the bank including houses, deposits, monies, and bank account against legal proceedings, court decisions and nationalizations/acquisitions acts.
  • Providing corporate status.
  • Empower the Minister for Finance to implement the decisions of the EADB’s governing board, by amending the schedule to this Act through the Government Notice.
  • Define the bank’s properties as including its houses, financial deposits entrusted to EADB for supervision.

9. The East African Community Customs management Act, 2004

These are to be implemented across the EAC partner states. The main Objective of the proposed changes is to enhance industrial production, improve transportation, health services, livestock development and communicationn sectors.

    • Extend the stay of application of CET rate of 35% on wheat grain and apply the CET rate of 0% for the period of one year.
    • Increase the CET rate on galvanized wire from 0% to 10%.
    • Split the tarrif line under HS Code 2106.90.91 in order to grant exemption of import duty to nfood supplements and mineral premix used in fortification of food supplements for feeding infants.
    • Redue the CET rate on set Top Boxes from 25% to 0%.
    • Reduce the CET rate on electricity from 10% to 0%.
    • Reduce the CET rate on inner glass flask used in thermos
    • Split the tariff line under HS Code 8523.80.00 in order to apply the CET rate of 0% on software instead of 25%.
    •  Grant duty remission to soap manufacturers using Palm Stearin, RDB by charging a duty rate of 0% instead of 10%.
    • Grant duty remission to soap manufacturers using LABSA as raw materials  from 10% to 0% for a period of one year.
    • Reduce the CET rate from 10% to 0% on cathodes and selections of cathodes.
    • Coninue applying the CET rate of 25% instead of 35% on cement for the period of one year.
    • Grant duty remission to lubricants producers using castor oil and its fractions as raw material from the CET rate of 10% to 0%.
    • Split HS Code 7308.90.90 to provide for the road guards rils and apply the CET rate of 10% instead of 25%.
    • Introduction of exemption of import duty tomachinery and spare parts used in mining activities.
    • Excludes spare parts of motor vehicles that will be imported by the mining companies.
    • Refridgerated trailers to be accorded same treatment as refrigirated trucks which are exempt from import duty to encourage distribution of fresh products like milk and meat.
    •  Grant duty remission to producers/manufacturer of medical diagnostic kits.
    • Grant Exemption of import duty to honey refiners, honey strainers,honey pumps, hive tols, queen rearing equipments and protective gears.
    • Continue granting exemption of import duty to Armed forces Canteen Orgnization for the period of one year.
    • Provide duty remission to producers of nutritious food/profducts for feeding infants facing malnutrition and persons suffering from HIV/AIDS in the country.

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