Tanzania’s government received $71.5 million in digital tax revenue from 1,820 online businesses between July 2024 and March 2025, with digital betting platforms accounting for most of this revenue.
In Parliament on Wednesday, April 29, Deputy Minister of Industry and Trade Exaud Kigahe stated, “The digital betting industry is the primary contributor.” As Tanzanian businesses and customers adopt digital platforms, online commerce and leisure are growing rapidly.
The Tanzanian Revenue Authority (TRA) maintains a strong digital service tax structure. In July 2022, non-resident electronic service providers were charged two percent Digital Services Tax (DST), a three percent withholding tax on digital platforms, and an 18 percent VAT on electronic services.
These measures ensure that local and foreign online businesses pay their fair share of taxes on revenue generated within Tanzania. “This framework is designed to ensure the fair taxation of locally generated revenue, particularly from foreign entities,” officials have emphasised.
Tanzania developing national e-commerce strategy
During the same announcement, Deputy Minister Kigahe revealed that Tanzania is finalising a national e-commerce strategy to modernise regulations, boost tax collection, and support the growth of the digital sector. The strategy includes strengthening information and communication technology infrastructure, revising public policies, and improving logistics and online transaction security.
“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,” Kigahe explained.
Digital platform awareness and online transaction safety are the goals of the new strategy. This is expected to boost participation in the digital economy and help the government collect income from undeclared digital activities.
According to the TRA, “Tanzania has set an ambitious goal to raise tax revenue to 14.4 percent of GDP by 2026,” with digital taxes playing a key role in meeting this target.
Tanzania’s growing digital economy presents regulatory and tax challenges for the government, particularly in sensitive areas like online gambling. The evolving regulations aim to balance innovation, consumer protection, and effective tax collection.
