Railway Development Levy and Customs Processing Fee in Tanzania

The Railway Development Levy

Section 68 of the Railways Act sets up a Railway Fund and a levy known as the Railway Development Levy ¹. The TanzLII version in force from 14 July 2023 to 30 June 2024 charges the levy at 1.5 percent of customs value on importation of goods ¹. It is charged on goods entered for home consumption in Mainland Tanzania under the procedures of the East African Community Customs Management Act ¹.

The Finance Act, 2024 (No. 6 of 2024) was assented to on 30 June 2024 and commenced on 1 July 2024 ². Its section 75 amends section 68 of the Railways Act by deleting the figure 1.5 in paragraph (a) of subsection (5) and putting in the figure 2 ².

Railway levy exemptions and use of the money

The TanzLII version of section 68 in force to 30 June 2024 lists these goods as outside the levy ¹.

• Goods exempt under the Fifth Schedule of the EAC Customs Management Act, 2004 ¹.
• Pharmaceutical goods and equipment in Chapters 30 and 90 of the EAC Common External Tariff ¹.
• Fertilizers ¹.
• Kerosene type jet fuel (Jet A1), HS code 2710.19.21 ¹.
• Under that version, the TRA Commissioner General collects the levy and pays it into the Fund for railway infrastructure and rolling stock ¹.
• The Finance Act, 2024 replaced the rule on use of the money. Half goes to the Railway Infrastructure Fund and half to the Contingency Fund under the Budget Act ².

Court ruling on the levy

On 30 August 2023 the Court of Appeal of Tanzania decided Total Tanzania Limited v. Commissioner General (TRA), Civil Appeal No. 47 of 2022 ⁴. The company had imported Jet A1 aviation fuel, declared it for home consumption and sold it to international aircraft. TRA demanded levy of TZS 436,459,459.00 ⁴.

The court dismissed the appeal with costs. It held that the declaration for home consumption triggered the levy and that the company could not deny its own declaration ⁴. The judgment cites the levy as section 20A of the Railways Act, Cap. 170 ⁴. The TanzLII text of the Railways Act, 2017 places it in section 68 ¹.

The Customs Processing Fee

The Minister for Finance made the Tanzania Revenue Authority (Customs Processing Fee) Regulations, 2026 under section 41 of the Tanzania Revenue Authority Act, Cap. 399 ³. They were published as GN No. 158D on 30 June 2026 and start on 1 July 2026 ³. TRA lists them in its regulations library ⁵.

A person who imports goods for home consumption from outside the EAC Partner States pays the fee. So does a person who imports EAC goods that do not meet the EAC Rules of Origin ³. The importer pays when entering the goods for home consumption. The Commissioner General collects it under the procedures of the EAC Customs Management Act ³.

Who does not pay the processing fee

The Second Schedule of the 2026 regulations lists these exemptions ³.

• Goods imported by diplomatic and first-arrival privilege holders, donor agencies with agreements, and accredited international and regional organizations ³.
• Pharmaceutical goods of Chapter 30 of the EAC Common External Tariff ³.
• Goods for grant or loan funded projects with a government approved exemption ³.
• Goods for use by the President of the United Republic of Tanzania ³.
• Goods, equipment and vehicles for official use of the armed forces ³.

How importers pay

TRA says customs charges are paid through commercial banks or mobile networks with a GePG control number ⁶. Port and airport charges are paid on top of duties and VAT ⁶. The fee rate in force before 1 July 2026 was not confirmed in a primary source read for this page.