Tanzania, May 23 -- Arusha. The Court of Appeal has ruled that BRAC Tanzania Finance Limited is a financial institution and must therefore pay excise duty and Value Added Tax (VAT) under the country's tax laws.

The court held that although the entity is a non-deposit-taking lending institution, its operations fall within the legal definition of a financial institution because they resemble banking activities.

The ruling was issued on Thursday, May 21, 2026, by a three-judge bench comprising Shaaban Lila, Sam Rumanyika and Latifa Mansoor.

The civil appeal No. 204/2025 was filed by the Commissioner General of the Tanzania Revenue Authority (TRA) against the company, challenging a decision of the Tax Revenue Appeals Tribunal (TRAT).

The ...