Trading across borders
The Customs and Excise Department administers all taxes on international trade. The taxes include Import Duty, Excise Duty andValue Added Tax (VAT) on imports.
Import Duty is a tax levied on imported goods. The duty is usually calculated as an ad-valorem rate on C.I.F value of goods imported into the country, and is collected before goods leave the entry point into the country and/or bonded warehouses.
Excise Duty is levied on certain consumer goods on importation. The traditionally excisable goods are goods whose consumption is seen by the society as immoral i.e. beer and cigarettes, and goods whose consumption creates negative externalities to the society i.e. petroleum. In Tanzania apart from the traditional excisable goods soft drinks and motor vehicles are excisable for revenue generation purposes.
It is also charged on specific or ad-valorem rate, and the tax base for the ad-valorem rate is the C.I.F value plus the import duty.