Mainland and Zanzibar Tax Harmonization Dialogue: Strengthening Unity and Efficiency in Tanzania’s Tourism Industry
A defining moment for Tanzania’s tourism sector unfolded on 2nd September 2025, when the Commissioner General of the Zanzibar Revenue Authority (ZRA) convened a high-level meeting with representatives from the Tanzania Association of Tour Operators (TATO), Tanzania Revenue Authority (TRA), TATO Management, and the Zanzibar Association of Tour Operators (ZATO) at Gran Meliá Arusha.
This gathering, now recognized as the Mainland and Zanzibar Tax Harmonization Dialogue, marked a milestone in bridging long-standing fiscal gaps between Mainland Tanzania and Zanzibar. The session focused on addressing tax payment compliance challenges and aligning the implementation of revenue collection regulations to foster a more seamless, competitive, and unified tourism environment.
A Platform for Open and Constructive Engagement
The Mainland and Zanzibar Tax Harmonization Dialogue was born out of the industry’s need for clarity, fairness, and operational efficiency. For years, tour operators and hospitality stakeholders managing operations across both Mainland and Zanzibar have faced inconsistencies in taxation procedures — from double VAT issues to conflicting compliance timelines and overlapping licensing requirements.
At the session, industry players had the rare opportunity to voice these challenges directly to tax authorities. The Commissioner General of ZRA, accompanied by senior technical officers, provided detailed clarifications and reaffirmed the institution’s commitment to working closely with stakeholders.
“ZRA recognizes the importance of tourism to Zanzibar and to the Union as a whole,” the Commissioner General stated. “Our goal is not to create barriers but to ensure compliance that supports fairness, transparency, and mutual growth. We are committed to maintaining open dialogue and will continue engaging TATO and ZATO to address practical challenges.”
This clear and cooperative stance helped reset the tone for future engagement, emphasizing partnership over enforcement.
TATO’s Role in Facilitating Constructive Dialogue
As the leading private sector body for licensed tour operators, TATO played an instrumental role in coordinating this Mainland and Zanzibar Tax Harmonization Dialogue. For months preceding the event, TATO collected member feedback, compiled key taxation issues, and worked with the TRA and ZATO to set the agenda.
TATO’s leadership, represented by Chairman Mr. Wilbard Chambulo and Executive Director Mr. Elirehema Maturo, underscored that the tourism industry operates under a delicate balance of compliance and competitiveness.
“Tour operators are not against compliance,” said Mr. Chambulo. “We want systems that are efficient, harmonized, and supportive of Tanzania’s goal to be a leading destination. When regulatory frameworks between Mainland and Zanzibar differ significantly, it creates uncertainty for investors and operators alike. This dialogue is a step toward a lasting solution.”
Through its Advocacy and Lobbying mandate, TATO has long championed such engagements, ensuring that private-sector perspectives are heard in national decision-making forums. This approach has helped foster mutual trust and alignment between government institutions and the tourism community.
Highlights and Key Outcomes from the Dialogue
The Mainland and Zanzibar Tax Harmonization Dialogue provided clarity on several critical issues:
- VAT Application on Cross-Border Services:
ZRA clarified that VAT applies only to services rendered within Zanzibar and not to those originating or completed on the Mainland, helping eliminate confusion on double taxation for tour operators serving clients across both regions. - Unified Licensing Coordination:
Participants agreed on the importance of harmonizing licensing procedures to prevent duplication and streamline renewal timelines. Both TRA and ZRA acknowledged the need for improved communication between their systems. - Digital Integration:
A significant takeaway was the commitment from ZRA to strengthen its electronic filing and verification systems to align more closely with TRA’s platforms. This move aims to reduce manual processes and promote data transparency. - Continued Consultation:
The Commissioner General affirmed ZRA’s readiness to maintain ongoing stakeholder consultations and even proposed the formation of a Mainland–Zanzibar Joint Tax Technical Committee involving representatives from TATO, ZATO, TRA, and ZRA to address emerging issues. - Tourism-Centric Policy Awareness:
ZRA and TRA jointly pledged to conduct targeted capacity-building sessions for tourism businesses to improve awareness of tax obligations and compliance requirements, ensuring smoother cooperation.
“We believe that policy clarity and predictable tax administration are essential for tourism to thrive,” emphasized a senior TRA representative during the meeting. “Our institutions must facilitate, not frustrate, business growth.”
TATO’s Broader Commitment to a Unified Tourism Industry
The Mainland and Zanzibar Tax Harmonization Dialogue aligns perfectly with TATO’s strategic mission to create an inclusive, equitable, and sustainable tourism industry. While Tanzania’s Northern Circuit continues to attract the majority of international visitors, TATO is also driving efforts to diversify tourism across the Southern and Western Circuits, reduce overcrowding, and promote responsible travel.
In addition to policy advocacy, TATO continues to spearhead capacity-building initiatives. Through its Safari Guiding Code of Conduct and Ethics Training, over 1,000 driver guides have been trained on professional and ethical safari operations. The Association also facilitates participation of Tanzanian operators in international trade fairs such as ITB Berlin, FITUR Madrid, Matka Travel Fair in Finland, Africa’s Travel Indaba and Karibu–Kili Fair, ensuring that Tanzania’s tourism offerings remain visible and competitive on the global stage.
Environmental protection remains central to TATO’s vision. The De-Snaring Program in Serengeti, executed in partnership with the Frankfurt Zoological Society (FZS), has saved thousands of animals from illegal traps. Such projects reinforce the message that tourism thrives best when conservation and business sustainability move hand in hand.
Strengthening Collaboration for a Competitive Future
As Tanzania positions itself as Africa’s most efficient and investment-friendly tourism destination, the Mainland and Zanzibar Tax Harmonization Dialogue represents a pivotal step forward. The outcomes of this meeting, from regulatory alignment to shared digital strategies — will help create a more predictable business environment, encouraging both local and international investors to engage with confidence.
TATO remains committed to collaborating with both the TRA and ZRA to ensure that future tax policies are inclusive, coherent, and facilitative. The Association believes that sustainable growth can only be achieved through ongoing partnerships, mutual accountability, and open communication.
“Our vision is to see Tanzania operate as one seamless tourism destination,” said TATO Executive Director Mr. Elirehema Maturo. “Whether it’s a visitor landing in Zanzibar or Arusha, the experience and regulatory processes should reflect harmony and unity. That’s how we’ll truly compete at the global level.”
Final Remarks
The Tanzania Association of Tour Operators (TATO) extends its sincere appreciation to the Commissioner General of the Zanzibar Revenue Authority, the Tanzania Revenue Authority, and the Zanzibar Association of Tour Operators (ZATO) for their active participation and spirit of collaboration during the Mainland and Zanzibar Tax Harmonization Dialogue.
This engagement symbolizes progress — a collective recognition that a unified tax framework can strengthen compliance while unlocking the full potential of Tanzania’s tourism economy.
Together, we are shaping a stronger, more integrated, and globally competitive tourism sector — one that speaks with one voice for Mainland and Zanzibar alike.
