Govt sets new fertiliser measures to boost productivity

DODOMA: THE government has pledged to strengthen support for the agricultural sector through increased use of affordable fertilisers, settlement of subsidy claims and wider adoption of digital payment systems to enhance productivity and improve service delivery.

The measures were unveiled recently by the Minister for Finance, Ambassador Khamis Mussa Omar, during the presentation of the 2026/27 National Budget in the National Assembly.

Amb Omar said the government will continue promoting the importation and use of affordable alternative fertilisers, including Calcium Ammonium Nitrate (CAN) and Sulphate of Ammonia (SA), while implementing a special subsidy programme for domestic producers.

It will also encourage greater use of organic and liquid fertilisers, which are not subsidised, as part of efforts to boost agricultural productivity.

In addition, the government will continue settling fertiliser subsidy claims to ensure adequate supplies during the 2026/27 farming season.

He said the budget aims to improve the economic and social wellbeing of Tanzanians, noting that about 65 per cent of the population lives in rural areas, making continued investment in agriculture critical to national development.

To improve efficiency in financial transactions, curb criminal activities and facilitate revenue collection, the government has directed that all payments in various sectors be conducted through digital platforms beginning in the 2026/27 financial year.

The directive will apply to the agricultural sector, including transactions conducted through Cooperative Unions and Agricultural Marketing Cooperative Societies (AMCOS) involving strategic crops such as cotton, cashew nuts, coffee, tea, sisal and tobacco, as well as agricultural inputs and pesticides.

The government has also proposed amendments to the Income Tax Act, Chapter 332, to introduce an Advance Single Instalment Tax system for buyers of food and cash crops.

Under the proposed arrangement, crop buyers will be required to pay income tax at the point of purchase, before transportation or transfer of ownership.

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The tax will be charged at one per cent of the crop value and paid to the Tanzania Revenue Authority (TRA). Upon payment, buyers will receive an Advance Single Instalment Tax certificate, which may be used during transportation. Since the tax is an advance payment, it will be offset against annual income tax liabilities.

The minister said the measure is expected to increase government revenue by 99.87bn/-. On climate change, he said the government has continued to implement various interventions to address climate-related challenges affecting key sectors, particularly agriculture.

Through the World Bank-supported Contingent Emergency Response Component (CERC), Tanzania received a total of 320 million US dollars (about 838.4bn/-) during the 2024/25 and 2025/26 financial years to rehabilitate and restore critical infrastructure damaged by climaterelated events.

He added that climate change considerations will continue to be integrated into national planning and budgeting processes.

The minister further said the government will continue strengthening the Agricultural Development Fund and investing in modern farming technologies to boost productivity, enhance food security and support sustainable agricultural growth.