Dar es Salaam, Sept. 22 -- A NEW fixed service levy of 0.25 per cent on business turnover has replaced the variable framework that allowed rates of up to 0.3 per cent, aims to simplify compliance while eliminating sector-specific arrangements.

The change, according to the Finance Act, 2025, effective from 1 July, standardises the levy across all sectors and eliminates previous discretionary arrangements while requiring companies to align their financial planning and reporting with a uniform rate.

“The new fixed rate of 0.25 per cent replaces the earlier framework that allowed local authorities to set rates up to 0.3 per cent,” PwC Tanzanias Service Levy Alert said.

“This means sector-specific arrangements, such as the...