Tanzania’s transport sector is entering a season of unprecedented change. On June 12, 2025, the Minister for Finance, Hon. Dr. Mwigulu Lameck Nchemba, unveiled the National Budget for the 2025/2026 fiscal year. While the budget touched on many sectors, the biggest headlines for the common Tanzanian were found in the “presumptive tax” reforms.
By introducing significant tax reliefs for electric motorcycles and small goods-carrying vehicles, popularly known as ‘Guta’, the government is sending a clear message: the future of Tanzanian urban logistics is affordable, efficient, and increasingly green.
The New Tax Reality for Small-Scale Transporters
For years, motorcycle and Guta operators have navigated a complex and sometimes burdensome tax landscape. The 2025/26 budget simplifies this by introducing fixed annual presumptive tax rates that favor small-scale operators.
According to the new framework, the government has set the following simplified tax rates:
- Two-wheeled Motorcycles: Fixed annual tax of TSh 120,000.
- Three-wheeled ‘Bajaji’ (Passenger): Fixed annual tax of TSh 120,000.
- Goods-Carrying ‘Guta’ (up to 500kg): Fixed annual tax of TSh 120,000.
Furthermore, registration fees for commercial motorcycles have been halved from TSh 340,000 to TSh 170,000, covering a three-year period. This reduction is designed to formalize the sector and put more money back into the pockets of “Bodaboda” and Guta drivers. To stay updated on how these tax shifts affect vehicle ownership costs, automag.tz is the essential resource for the latest Tanzanian automotive policy and news.
Why ‘Guta’ Operators are Winning
The ‘Guta’ is the backbone of small-scale trade in cities like Dar es Salaam and Mwanza. By capping the tax at TSh 120,000 for vehicles with a capacity of less than 500kg, the government is incentivizing the use of these nimble vehicles over larger, more expensive trucks for urban last-mile delivery.
While these new incentives make it easier to run a transport business, many operators still rely on the reliability of used machinery to start their journey. To find second-hand cars or commercial vehicles suitable for these conditions, check out auto24.tz. On the platform, you can find popular models like the Suzuki Carry or Toyota TownAce, which often serve as the bridge for entrepreneurs moving from a Guta to a full-sized delivery van.
The Electric Revolution: Full Steam Ahead
The 2025/26 budget doubles down on Tanzania’s commitment to the National E-Mobility Framework. Electric motorcycles and Bajajis now enjoy even deeper incentives than their petrol-powered counterparts. Specifically, Battery Electric Vehicles (BEVs) are now fully exempt from excise duties, which typically range from 5% to 10% for traditional engines.
For drivers looking to explore sustainable mobility, EV24.africa offers import options for electric cars and high-capacity motorcycles, expanding choices in the growing eco-transport sector. With the start of electricity production at the Julius Nyerere Hydropower Plant, the cost of “fueling” these electric vehicles is set to drop even further compared to rising petrol prices.
Pro-Tips: Caring for Your Small Commercial Vehicle
Whether you are riding a brand-new electric motorcycle or a used Guta, maintenance is the key to profit. A vehicle that is in the garage is a vehicle that isn’t making money.
- Chain and Sprocket Health: For motorcycle and Guta operators, the chain is your lifeline. Clean and lubricate your chain every 500km, especially during the rainy season when mud can cause premature wear.
- Tire Pressure and Load: Gutas are often overloaded. Check your tire pressure daily; under-inflated tires on a loaded Guta can lead to sidewall failure and increased fuel (or battery) consumption.
- Battery Maintenance (For Electric): If you are using an electric Guta, avoid “deep discharging” the battery below 20%. Regular, shallow charges are much better for the long-term health of lithium-ion cells.
- Brake Inspections: Stop-and-go traffic in Dar es Salaam’s markets is tough on brakes. Inspect your brake pads or shoes every month to ensure you can stop safely when fully loaded. Discover additional tips on keeping your commercial vehicle in top shape on our main site.
The Road Ahead
The 2025/26 budget is a game-changer for the “Guta” and “Bodaboda” economy. By slashing registration fees and simplifying income tax, the government has removed the barriers to entry for thousands of young Tanzanians. Whether you choose a new electric model or a verified pre-owned workhorse from auto24.tz, there has never been a better time to be in the Tanzanian transport business.
