Governments in Africa have been implementing measures to increase revenue collection through tax reforms and business regulations. This week, governments in Kenya, Tanzania, and South Africa released important policy updates for businesses and taxpayers.
Africa Tax News, The policy announcements, ranging from fuel VAT relief in Kenya, Digital Services Tax update in Tanzania, to tighter tax measures by South Africa, below, will give you details on everything businesses should know.
VAT Cut on Fuel in Kenya, More Proposed VAT Cuts
Kenya’s government cut the VAT on petroleum products down to 8% after the current level of 16%. The decision was taken along with the fuel subsidy to help people and businesses deal with the new reality of energy markets worldwide.
Moreover, other tax measures are proposed by the government through the Finance Bill 2026. These include:
- Making some sugar cane transportation services non-zero-rated but VAT-exempt.
- Imposing a 1.5% withholding tax on scrap metal transactions to ensure tax compliance and to ensure there is fair competition between local metal dealers.
If approved, these provisions will be part of the general fiscal reforms of Kenya designed to improve domestic revenue collection.
Tanzania Increases Digital Services Tax to 3%
The government of Tanzania has announced an increase in the DST levied on digital service providers outside Tanzania.
As part of the country’s 2026/27 national budget, DST has increased to 3% for digital service providers who offer their products online and to Tanzanian residents.
It will help to increase the tax base and also make international digital firms contribute more equally to the public coffers.
South Africa Advises Businesses on July Tax Deadlines
The South African Revenue Service (SARS) has reminded businesses of several tax deadlines in the month of July.
Some important deadlines for business owners and taxpayers are the following:
- 24 July: Manual submissions of VAT and provisional CIT.
- 31 July: Electronic submissions of VAT.
SARS has advised taxpayers to submit tax documents timely in order to avoid penalties, interest, and other compliance issues.
Tax Compliance by SARS is Getting Stricter
Apart from deadlines, SARS has announced more stringent compliance measures against businesses and multinational companies.
The recent updates are the following:
- Global minimum tax reporting.
- Increase in enforcement of corporate and provisional taxpayers.
- Import controls for cross-border e-commerce.
The measures ensure South Africa’s tax system is in line with international standards, as well as the efficient collection of revenues domestically.
What to Be Aware of As a Business
The new tax measures show how African countries are developing their tax policies not only to ensure growth but also to collect revenue.
Multijurisdictional businesses need to pay attention to the following:
- VAT changes.
- Digital service tax updates.
- Corporate tax compliance measures.
- Deadlines for tax filings.
- Updates in imports and e-commerce regulations.
Africa Tax News
This week, Kenya, Tanzania, and South Africa have made some major changes regarding taxation and business policies. Kenya has expanded the exemption period for fuel VAT, but at the same time has introduced some new tax laws via the Finance Bill 2026. Tanzania has raised the rate of Digital Services Tax from 2% to 3%. South Africa is also making efforts to improve its tax collection system by issuing various compliance regulations and deadlines in July.
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