What You Need to Know
Tanzania has introduced a new fuel tax payment system aimed at tightening revenue collection and reducing tax evasion in the petroleum sector. Industry stakeholders, including MOIL Energies, have praised the initiative for its potential to enhance transparency and efficiency in fuel distribution, ensuring that taxes are paid upfront before fuel is released into the market.
Africa-Press – Tanzania. A newly introduced fuel tax payment system is tightening revenue collection and curbing tax evasion in Tanzania’s petroleum sector, with industry players hailing it as a game-changer.
MOIL Energies said the system—requiring taxes to be paid before fuel is released into the market—has significantly reduced malpractice that previously led to revenue losses.
Speaking in Dar es Salaam, the company’s Country General Manager, Sajad Habib Rai, said the firm is proud to have been among the first to propose the mechanism to regulators, including EWURA and the Petroleum Bulk Procurement Agency, before its formal rollout by the Tanzania Revenue Authority.
“We are pleased to see TRA fully supervising the system. It blocks tax evasion that was previously common and ensures the government collects revenue upfront before fuel enters the market,” he said.
The system, recently launched by TRA, is designed to seal revenue leakages associated with fuel imports by enforcing early tax compliance.
Under the arrangement, importers must declare fuel volumes in advance, while the Tanzania Bureau of Standards applies special markers to identify each consignment and importer, enabling accurate tax assessment and traceability.
Rai noted that compliant traders stand to benefit from a more transparent and efficient system, saying the move will improve fuel distribution both locally and across borders while contributing to national development.
The tax framework also streamlines supply by allowing fuel to move directly into the market once cleared, reducing delays and ensuring timely delivery to consumers, while preventing diversion of transit fuel meant for export.
Meanwhile, Yusuph Juma Mwenda said the initiative is part of broader efforts to simplify business operations and eliminate long-standing bottlenecks in the sector.
He encouraged traders facing challenges to engage TRA for support, adding that the authority has introduced 24-hour operations to speed up services for importers, distributors and fuel marketers.
The introduction of the new fuel tax system in Tanzania marks a significant shift in the country’s approach to revenue collection within the petroleum sector. Historically, tax evasion and revenue leakages have plagued the industry, leading to substantial losses for the government. The new system, which requires taxes to be paid before fuel is released, aims to address these issues by enforcing compliance and improving accountability among importers and distributors. This initiative is part of broader efforts by the Tanzania Revenue Authority to streamline operations and enhance the business environment in the country.
