Contents - Tanzania Revenue Authority

Example 4 Calculations
Duty/Tax Type Computation Duty/Tax
payable
(i)ImportDuty In order to obtain import duty to be paid, take
the certified customs value and multiply by
the import duty rate (25%).
USD 3,800 x 25% = USD 950
USD 950 x TZS 1,300 = TZS 1,235,000
TZS 1,235,000
(ii) Excise Duty*) In order to obtain excise duty value, take the
certified customs value plus import duty
calculated in (i). Then multiply by the excise
duty rate (30 %*).
USD (3,800+950) = USD 4,750
USD 4,750 x 30%* = USD 1,425
(iii) Value Added
Tax (VAT)
Total Duty & Tax
Payable
USD 1,425 x TZS 1,300 = TZS 1,852,500
In order to get the value of VAT, take the
certifiedvalueandaddtoittheimportduty
and the excise duty you have calculated in
(ii). Then multiply by the VAT rate (20%).
USD (4750+1425) = USD 6,175
USD 6,175 x 20% = USD 1,235
USD 1,235 x TZS1300= TZS 1,605,500
Note: * The Excise Duty of 30%* is a sum of:-
(i) 10% imposed on imported saloon cars with engine
capacity of more than 2,000 cc and
(ii) 20% imposed on imported saloon cars with ten or more
than ten years from the year of manufacture.
(b) Imported non-utility vehicles with less than ten years old
from the year of manufacture.
Non-utility vehicles, with engine capacity less than 2,000
c.c. valued at USD 3,200 on arriving in Tanzania. (Assuming
exchange rate is 1 USD = 1,300 TZS)
Computation of duty and tax will be calculated based on the
applicable rate. Import Duty rate 25% and VAT 20%.
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TZS 1,852,500
TZS 1,605,500
Import Duty + Excise Duty + VAT TZS 4,693,000