Tanzania has officially lowered its Value Added Tax (VAT) rate from 18% to 16% under the Finance Act 2025, a move that is drawing significant attention to Kenya's tax policies. The Tanzania Revenue Authority confirmed the change, which will take effect once specific guidelines are issued by the Commissioner General.

• Tanzania's VAT rate is now 16%, down from 18%.
• The Tanzania Revenue Authority confirmed the tax reduction under the Finance Act 2025.
• Kenya had proposed similar VAT reforms in its Finance Bill 2024, intending to reduce the rate from 16% to 15% and increase the VAT registration threshold to Ksh8 million, but these proposals were later shelved.