• Tanzania collected $71.5 million in digital tax revenue from 1,820 online businesses, mainly in betting, between July 2024 and March 2025.
• A national e-commerce strategy is being finalized to modernize regulations, boost tax collection, and support digital sector growth.
• Digital services are taxed under a robust framework, including a 2% DST, 3% withholding tax, and 18% VAT on electronic services.
  
  

Between July 2024 and March 2025, the Tanzanian government collected 192.78 billion Tanzanian shillings (approximately $71.5 million) in tax revenue from 1,820 businesses operating online, with the digital betting industry being the primary contributor. Deputy Minister of Industry and Trade Exaud Kigahe disclosed these figures in Parliament on Wednesday, April 29th.

During the same parliamentary session, Kigahe announced that Tanzania is in the final stages of developing a national e-commerce strategy. This plan seeks to adjust the regulatory environment to the evolving digital marketplace and to optimize tax revenue generated by this rapidly expanding sector.

Key components of the strategy include bolstering information and communication technology infrastructure, revising current public policies and regulations, and enhancing communication, transportation, and logistics services. It also underscores the importance of securing online transactions and increasing public awareness regarding the adoption of digital platforms.

This strategy will align with the existing tax framework governing digital services. Since July 2022, Tanzania has implemented a 2% Digital Services Tax (DST) on non-resident providers of electronic services, in addition to a 3% withholding tax on platforms facilitating transactions. These services are also subject to an 18% VAT. This framework is designed to ensure the fair taxation of locally generated revenue, particularly from foreign entities.

Through this strategy, Tanzanian authorities aim to stimulate the use of online commerce, enhance tax collection, and combat undeclared digital activities. The government's challenge now will be to solidify this growth while addressing the risks associated with the digital sector, particularly in sensitive areas like online gambling.

By Samira Njoya,

Editing by Sèna D. B. de Sodji