Tanzania’s Finance Act 2026 took effect on 1 July 2026 and it re-drew the excise duty bands on imported used vehicles. Cars aged eight to ten years now attract 18%, cut from the 20% originally proposed in the Finance Bill. Ten to twenty years stays at 35%, over twenty years at 40%. And a band that used to pay nothing now pays something: vehicles up to 1,000cc pick up a 5% excise duty for the first time.
The short version
- Used vehicles aged 8 to 10 years attract 18% excise duty — Parliament amended this down from the 20% in the Finance Bill.
- Vehicles aged 10 to 20 years continue at 35%; those over 20 years at 40%.
- Vehicles not exceeding 1,000cc, previously exempt, now attract 5% excise duty.
- The measures took effect 1 July 2026, with the Act assented to on 30 June 2026.
- Excise sits on top of import duty and VAT, so a change in the excise band moves more than the excise line.
The bands as enacted
| Vehicle age at import | Excise duty | Change |
|---|---|---|
| Up to 8 years | Per the applicable schedule | See note below |
| 8 to 10 years | 18% | Enacted at 18%, down from 20% proposed |
| 10 to 20 years | 35% | Unchanged |
| Over 20 years | 40% | Unchanged |
| Not exceeding 1,000cc | 5% | New. Previously exempt |
Rates as reported on enactment of the Finance Act 2026, effective 1 July 2026. Verify the applicable band for your specific vehicle with the Tanzania Revenue Authority before importing.
We have deliberately not filled the first row with a number. Tanzania has historically treated newer vehicles differently from the aged bands above, and we could not verify the current rate for that band against a primary Tanzania Revenue Authority schedule at the time of writing. A missing rate is safer than a wrong one, and the authority is the place to get it.
Parliament cut the 8–10 year band from 20% to 18%. That is a two-point win nobody campaigned loudly for and it is worth real money on the corridor Tanzania actually buys in.
What it does to a landed number
Excise duty in Tanzania, like customs duty, is charged on a value the revenue authority determines, and it stacks with import duty before VAT is applied. The consequence is that a percentage-point change in excise does not simply add that percentage to the price — it moves the base that VAT is then charged on as well.
The illustration below shows the shape of the two-point amendment on the excise line alone. It is not a full landed cost, and it does not carry Tanzanian import duty or VAT rates, because those need verifying against the Tanzania Revenue Authority for the specific tariff line rather than being estimated here.
The 8–10 year band, as proposed and as enacted
Illustrative, on an assumed dutiable value of US$8,000
On one car that is modest. On a twenty-unit consignment it is US$3,200 before the VAT compounding is counted, which is roughly the freight on two more cars.
The small-engine change is the one to watch
Moving vehicles up to 1,000cc from exempt to 5% is a small percentage applied to the segment with the least headroom. A sub-1,000cc car is bought precisely because the buyer is at the edge of what they can afford, so a new charge lands harder there than a two-point cut helps further up the range.
It also changes the shape of what makes sense to ship. If the small engine no longer carries an exemption, the calculation against a 1.3 or 1.5-litre car with better residuals and a deeper parts network narrows. That is a dealer question about which specification to commit capital to, and it deserves rerunning rather than assuming last year’s answer holds.
Does this apply to you?
It applies if you are importing a used vehicle into Tanzania, whether as a private buyer or a dealer. It does not apply to Kenya, Uganda, Zimbabwe or any other market in the region — East African neighbours share a customs union but not their excise schedules, and assuming otherwise is a common and expensive mistake.
- The age band is measured at import, not at purchase. A car that is seven years and ten months when you bid may be eight years when it clears. Sea freight from Japan to Dar es Salaam is not instant, and the band boundary does not wait for you.
- The band boundaries are worth more than the rates. Moving from just under ten years to just over ten years takes the excise from 18% to 35%. That single boundary is worth more than every negotiation you will have on the hammer price.
- Check the assessed value, not the invoice. Excise applies to the authority’s determination. A keen purchase does not proportionally reduce the tax.
The boundary is the strategy
If you are buying into Tanzania at the edge of the ten-year line, the shipping schedule is part of the tax plan. Work backwards from the date the vehicle crosses ten years from manufacture, subtract the voyage, subtract the clearance queue, and only then decide what you are allowed to bid on. Our Japan export documents guide explains which document carries the manufacture date the authority will read.
Is your car still legal to import?
Nothing in the Finance Act 2026 as reported changes admissibility. There is no new age bar, and vehicles over twenty years remain importable at the 40% band rather than prohibited. What changed is what they cost, not whether they may come.
Move now or wait?
The measures are already in force, so there is no deadline to beat. The useful timing question is about the individual car rather than the policy: if the vehicle you want is approaching a band boundary, moving sooner is worth a great deal; if it sits comfortably inside a band, Tanzanian tax is not a reason to hurry.
The thing that should be moving your timing this quarter is the currency. The yen’s reversal since late July has taken a slice out of the discount Japanese stock has carried all year, and that is a larger swing on most Tanzanian imports than the two points Parliament gave back on excise.
Excise duty, import duty, VAT and valuation rules are set by the Government of the United Republic of Tanzania and change without notice. The rates above reflect reporting on the enactment of the Finance Act 2026 and were checked on 10 September 2026. Verify your own position with the Tanzania Revenue Authority or a licensed clearing agent before committing funds.
Pricing a Dar es Salaam consignment?
We buy at auction in Japan every week, inspect before your money moves, and quote one landed figure to your port with clearance support at destination. Send us the specification, the year band and the volume and we will build the number — start here. Our guide to buying at Japanese auction explains how the halls actually work.
Sources
- Importing a used car now costs more as Finance Act takes effect — The Citizen (Tanzania)
- Finance Bill 2026 drops agricultural withholding tax, softens used car duties — TanzaniaInvest
- Tanzania enacts Finance Act 2026 with excise, VAT compliance measures — Regfollower