MaxShimba
JF-Expert Member
- Apr 11, 2008
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Agricultural Tax Laws in Tanzania
Agricultural taxation in Tanzania is a potential area of barriers to trade, if not well planned. To promote agriculture, the government starting from 2000 has been attempting a number of tax incentives that aim at creating conducive investment environment in the agricultural sector and thereby enhancing productivity of smallholder farmers. In 2002 the government abolished development levy.
The tax regime which was put in place between 2003 and 2005 aimed also at implementing the Poverty Reduction Strategy. It includes the following:
(i) The Income Tax Act, 2004
The Act allows full deduction in the first year of income of costs incurred in course of:-
• Clearing of farming land, excavation of irrigation canals, cultivation of perennial crops and planting trees for farming land to prevent soil erosion.
• Costs incurred in the course of environmental conservation for farming land, animal husbandry, fish farming or restoration of the land to normalcy after use are immediately deductible in assessing taxable income.
• Research and farming land development expenditures are also immediately deductible for income tax purposes.
Read more »
Agricultural taxation in Tanzania is a potential area of barriers to trade, if not well planned. To promote agriculture, the government starting from 2000 has been attempting a number of tax incentives that aim at creating conducive investment environment in the agricultural sector and thereby enhancing productivity of smallholder farmers. In 2002 the government abolished development levy.
The tax regime which was put in place between 2003 and 2005 aimed also at implementing the Poverty Reduction Strategy. It includes the following:
(i) The Income Tax Act, 2004
The Act allows full deduction in the first year of income of costs incurred in course of:-
• Clearing of farming land, excavation of irrigation canals, cultivation of perennial crops and planting trees for farming land to prevent soil erosion.
• Costs incurred in the course of environmental conservation for farming land, animal husbandry, fish farming or restoration of the land to normalcy after use are immediately deductible in assessing taxable income.
• Research and farming land development expenditures are also immediately deductible for income tax purposes.
Read more »
