Customs and revenue in Zanzibar: TRA and ZRA

How the work is split

Section 2 of the Tanzania Revenue Authority Act, Cap. 399 says the Act applies to Mainland Tanzania and to Tanzania Zanzibar ⁶. TRA must assess, collect and account for revenue under the laws in the First Schedule. Part A of that schedule lists the Income Tax Act, the East African Customs Management Act and the Excise (Management and Tariff) Act, among others ⁶. The TanzLII text read is the version in force from 30 November 2019 to 30 June 2020. Finance Act changes from 2020 to 2025 are not applied in it ⁶.

The Principal Secretary of the Zanzibar Ministry of Finance sits on the TRA Board (section 10(1)(c)) ⁶. ZRA describes its own role as the administration of all domestic non-union taxes in Zanzibar ¹.

Taxes ZRA lists

The ZRA website lists these taxes and charges on 24 October 2026 ¹.

• Value added tax, VAT on digital services and excise duty ¹
• Hotel levy, restaurant levy and tour operation levy ¹
• Infrastructure tax, stamp duty and petroleum levy ¹
• Airport service charge and seaport service charge ¹
• Motor vehicle registration, driving licences, land lease and property tax ¹

Zanzibar VAT

ZRA gives a VAT rate of 15 percent on taxable goods and services supplied in Zanzibar and on taxable imports. Financial services, insurance, telecommunications and some digital services are taxed at 18 percent, and exports at 0 percent ³. Registration applies from taxable turnover of TZS 100 million. ZRA names the law as the Value Added Tax Act No. 4 of 1998 ³. The ZRA VAT page does not say who collects import VAT at the port ³.

Goods moving between Zanzibar and the Mainland

• Where VAT paid in Zanzibar was lower than the Mainland rate, the difference is collected by TRA from the taxable person when the goods are moved to the Mainland, according to a TRA page ⁵.
• Where Zanzibar VAT was paid at the same rate, no VAT is due on the transfer ⁵.
• Where a Mainland supplier sells directly to a Zanzibar taxable person, TRA collects the VAT and remits it to the Zanzibar revenue body, which the undated TRA page names as the Zanzibar Revenue Board ⁵.

Seaport service charge

ZRA collects a seaport service charge from passengers and sea transport owners under the Port Service Charge Act No. 2 of 1999. Payment is due before embarkation or as the commissioner decides ⁴.

TRA in Zanzibar and online systems

TRA Zanzibar collected TZS 471 billion from July 2024 to March 2025 against a target of TZS 442 billion, and was given a target of TZS 825 billion for 2025/26, as reported by The Guardian on 20 June 2025. Deputy Commissioner Saleh Haji Pandu credited online tax payment before cargo arrives with cutting delays at Malindi port ⁷.

TRA plans a TZS 3.6 billion office in Kizimkazi. Finance Minister Khamis Mussa Omar told TRA to work closely with ZRA in using the offices and facilities it builds in Zanzibar, as reported by Flora Lyaruu of Daily News on 18 August 2026 ⁸.

ZRA runs the ZIDRAS taxpayer portal and the Virtual Fiscal Management System (VFMS). It posted an amendment of the VFMS Regulations, 2026 on 1 September 2026 ¹.