Tanzania introduces tax incentives to boost edible oil production from local seeds

The Tanzanian government has announced an exemption from value-added tax (VAT) on edible oils produced using locally grown oilseeds. The measure aims to support domestic oilseed processing and reduce the cost of edible oils for consumers.

The announcement was made by government representative Ambassador Khamis Mussa Omar while presenting the 2026/2027 fiscal year budget proposals in parliament in Dodoma. He said the package also includes several customs duty changes, including a 10% duty on imported crude edible oils (except palm oil) and a 10% export levy on crude sunflower oil and sunflower seeds.

A zero percent duty will apply to crude palm oil imports, while a 10% duty will be imposed on semi-processed palm oil. Refined edible oils will be subject to a 35% duty or USD 300 per tonne, whichever is higher, replacing the previous uniform tariff.

The government said the reforms are intended to encourage domestic production of oilseeds such as sunflower and cotton, while also addressing misdeclaration and misclassification of imported products. The policy also introduces a permit system for imports and support for investment in oilseed production.

In addition, the government will continue subsidising sunflower and cotton seeds over the next five years at around TZS 2 million annually. The programme aims to increase domestic edible oil output and gradually reduce reliance on imports.

Tags: oilseeds, sunseed, palm oil, duties, sunflower oil, subsidies