How to Calculate Tanzania Revenue Authority Car Taxes

Buying a used car in Tanzania requires a series of processes, which is why you must be adequately informed to avoid mistakes. Firstly, you must learn the import rules and regulations in the country. Also, you need to know how to compute your taxes before making a purchase.

This detailed guide contains what you need to know to calculate Tanzania Revenue Authority car taxes. Let’s get to it!

How Can I Calculate the Tanzania Revenue Authority Car Import Tax?

Calculating the total cost of importing a vehicle in Tanzania can be daunting without all the required information. That’s why we have curated this detailed guide to help you. However, before we begin, you must know that the figures in this post are not specific to any vehicular model. With that in mind, here are the steps to follow when calculating Tanzania Revenue Authority car taxes:

Step 1: Collect information on the Vehicle

You will need to collect information about your chosen car model, including the car make, car model, year of manufacture, model code, engine size, FOB, and fuel type.

Step 2: Record the Car’s Cost Insurance Freight (CIF)

The next step is to record the vehicle’s CIF. You can do this by choosing a country of destination or a port of delivery. The popular shipping destinations in Tanzania include Dar Es Salaam, Arusha, Mbeya, Dodoma, Morogoro, Mwanza, Tanga, Tabora, and Zanzibar.

Step 3: Convert the price to TZS 

You will notice that most of the prices online are in US dollars (USD). Exchange rates are constantly changing, so make sure you use a calculator to convert US dollars (USD) to Tanzanian Shillings (TZS).

You should also consult your bank representative since you will make payments and transactions via your local bank. They will provide you with all the required information about their current exchange rate. For instance, if 1 USD = 2,000 TZS, the CIF will be 4,000,000 TZS.

Step 4: Calculate the Car Import Tax in Tanzania  

The import fees you will pay for an import vehicle in Tanzaniadepend on age and engine capacity. These car import taxation rules will give you a clearer view of how import taxes are computed in Tanzania:  

Engine Capacity of 2000 cc and belowEngine Capacity over 2000 ccVehicles 8 years and above
Import Duty: 25%

Value Added Tax (VAT): 20%

Cumulatively, 50% of the vehicle’s dutiable value
Import Duty: 25%

Value Added Tax (VAT): 20%

Excise Duty: 10%

Cumulatively, 60% of the vehicle’s dutiable value
Utility Vehicles: 5%

Non-Utility Vehicles: 25%

Taxation rules do not apply to types of machinery, including earth-moving equipment like the grader, bulldozers, and agricultural equipment that are eight years old and above. However, light cars and trucks beyond this age limit attract an excise tax of 20%. It’s important to know that excise duty depends on the vehicle’s cylinder capacity.

For a cylinder capacity of over 2000 cc, you will need to pay 10% excise duty. A vehicle with cylinder capacity above 1000 cc but below 2000 cc attracts 5% excise duty. However, you will be charged 0% excise duty on vehicles with cylinder capacity of 1000 cc and below.

Step 5: Calculate the Total Port Costs 

The total cost you will pay is dependent on the make and model of the vehicle.

Step 6: Calculate the Total Expenditures 

Let us assume that the import tax is 5,000,000, TZS and you have to pay a total port cost of 1,500,000 TZS. Here’s how to compute the overall expenditures:  

Car Import Tax + CIF + Port Cost = Total Amount of the Imported Vehicle after Taxes

 5,000,000 TZS + 4,000,000 + 1,500,000 = 10,500,000 TZS

Step 7: Calculate other Fees and Taxes 

You should know that if you import more than one new or used vehicle from Japan, you must pay taxes and other fees for each vehicle. Here’s how to compute the import declaration fee:

FOB (Free on Board) Price x 1.12 + $10 

Conclusion

Importing a car from Tanzania can be exhausting if you don’t have all the required information. You will need to register with the Tanzania Revenue Authority and pay import taxes. The information we provided will help you compute your Tanzania Revenue Authority car taxes correctly. We hope you have a wonderful experience during your purchase.

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