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Tanzania to Reform VAT on Clean Cooking Appliances to Boost National Strategy. The Tanzanian Ministry of Finance has committed to continuing its reforms on Value Added Tax (VAT) for clean cooking appliances in a bid to promote the clean cooking agenda and make these products more affordable for the public.
This initiative is part of the government’s broader strategy to enhance the adoption of clean cooking energy across the nation.
Tanzania to Reform VAT on Clean Cooking: Ongoing Efforts and Stakeholder Involvement
During a policy dialogue on clean cooking held in Dar es Salaam, Dr. Remidius Ruhinduka, Assistant Commissioner for Policy Analysis at the Ministry of Finance, emphasized the government’s openness to adopting reforms that support national goals.
The dialogue, themed “Tax Impact on Acceleration of National Clean Cooking Strategy,” was organized by the United Nations Capital Development Fund (UNCDF) and brought together various stakeholders to discuss tax-related issues in the clean cooking sector.
Dr. Ruhinduka highlighted the importance of collaboration between the government and stakeholders to realize the ambitions set forth in the National Clean Cooking Energy Strategy.
He encouraged stakeholders in the clean cooking energy sector to develop a viable proposal for reforming taxes on clean cooking appliances.
In line with this, the ministry is scheduled to conduct a series of zonal tax dialogues in the coming months, providing a platform for stakeholders to voice their opinions and contribute to shaping the country’s tax policies.
Tanzania Extends VAT Exemption on Air Charter Services
National Strategy for Clean Cooking
The Tanzanian government has shown a strong commitment to promoting clean cooking energy. On May 8th, President Samia Suluhu Hassan launched the National Clean Cooking Energy Strategy in Dar es Salaam. This ten-year roadmap aims to ensure that 80% of the population uses clean cooking energy by 2034.
As part of these efforts, the government has already taken steps to make clean cooking energy more accessible. Dr. Ruhinduka mentioned that the government has removed VAT on materials used to produce gas cylinders, making Liquefied Petroleum Gas (LPG) cylinders more affordable for consumers.
This move is intended to ease the financial burden on households and encourage the transition from traditional cooking methods to cleaner alternatives.
International Support and Advocacy
The dialogue also featured contributions from international stakeholders, underscoring the global significance of Tanzania’s clean cooking initiative. Abraham Byamungu, UNCDF Senior Investment Officer, expressed the organization’s support for the government’s ten-year strategy.
He noted that while the government is receptive to proposals for tax reforms, it has requested a thorough assessment to demonstrate the potential benefits of removing taxes on clean cooking appliances.
Massimiliano Pedretti, Energy Portfolio Manager for the European Union (EU) Delegation to Tanzania, emphasized the health and environmental benefits of using clean cooking energy.
Although the initial cost of purchasing clean cooking appliances may be high, Pedretti pointed out that their long-term use is more cost-effective compared to traditional methods like charcoal.
Conclusion
The Tanzanian government’s commitment to reforming VAT on clean cooking appliances marks a significant step towards achieving the goals of the National Clean Cooking Energy Strategy.
By engaging with stakeholders and considering proposals for tax reforms, the Ministry of Finance aims to make clean cooking energy more accessible to the population, contributing to better health outcomes and environmental protection.
The upcoming zonal tax dialogues will provide further opportunities for public participation in this important initiative.
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