Tanzania is improving revenue collection, but the fairness of revenue mobilisation is weakening due to regressive taxes and rising debt service.

Taxation of High Net Worth Individuals (HNWIs) is a fairly new area, and countries are still experimenting with various approaches, with the main reform action in African countries being the establishment and operation of a dedicated HNWIs Unit. The task of taxing this segment of taxpayers is challenging because HNWIs have complex tax affairs, are involved in cross-border transactions, and are politically connected which may end up limiting the enforcement capability of the revenue authorities

Taxation of High Net Worth Individuals (HNWIs) is a fairly new area. Countries are still experimenting with various approaches, with the main reform action in African countries being the establishment and operation of a dedicated unit within the structure of the respective countries’ tax administrations for the management of the tax affairs of the HNWIs (ICTD, 2024).

This policy brief highlights the urgent need for Tanzania to strengthen its domestic resources to finance the health sector, as foreign aid continues to decline rapidly. It explores the importance of raising the bar in mobilizing enough resources from within Tanzania to finance the health sector. Despite a notable contribution from external sources, it has recently been confirmed that foreign aid is declining at a shocking pace. The Policy Brief at hand underscores the urgent need of bolstering internal health financing mechanisms as foreign aid continues to wane.

This policy brief offers a succinct analysis of Tanzania's present state of property and corporate taxes. It emphasizes their economic contribution, the obstacles to revenue collection, a comparison with regional counterparts, and the influence of significant economic factors. Understanding these elements is vital for creating effective policies to boost domestic resource mobilization and support Tanzania's developmental objectives.  

This document is a joint response on behalf of the Global Alliance for Tax Justice (GATJ) and a broad coalition of organizations and trade unions to the Co-Lead’s Draft Framework Convention Template, published 24 October 2025. GATJ facilitates the Civil Society Financing for Development Mechanism’s Tax Justice Workstream with the support of one of its members, the European Network on Debt and Development (Eurodad). GATJ is a Southern-led global coalition in the tax justice movement.

Mifumo ya kodi ni msingi kwa maendeleo ya usawa kwa taifa lolote, inabeba nafasi muhimu katika kuhamasisha rasilimali na kutoa huduma muhimu. Hata hivyo, katika nchi nyingi ikiwemo Tanzania, ukosefu wa usawa kimfumo mara nyingi huzuia mifumo hii kufikia usawa na ushirikishwaji. Makundi yaliyotengwa, ikiwa ni pamoja na kaya za kipato cha chini na wanawake mara nyingi hubeba mzigo wa kodi usio na uwiano, ilhali faida za mapato ya umma hazijagawanywa kwa usawa.

This report provides an in-depth analysis of tax equity in Tanzania, emphasising the importance of fairness and inclusivity within the tax system. It explores the political, economic, and social factors that shape tax policies and their implementation, particularly focusing on marginalised communities that are disproportionately affected by existing tax policies.