Tanzania Budget Requires AI in Tax Collection and Mandates Digital Payments in Several Sectors

The Minister for Finance presented the government budget for the 2026/27 financial year, outlining steps to expand digital systems across tax collection and payments. AllAfrica reported that the budget directs the Tanzania Revenue Authority to apply artificial intelligence, Big Data, and other technologies to improve auditing and identify tax gaps.

The government also plans to connect data from local authorities more closely with national tax systems.

This integration is intended to speed up record verification and reduce manual processes. In the telecommunications sector, the budget calls for a gradual end to physical airtime scratch cards in urban areas. Purchases would shift to mobile money and banking applications.

Taxes on raw materials for optical fibre cables were reduced to support broader internet infrastructure. AllAfrica reported that the Tanzania Instant Payment System recorded 651 million transactions in 2025, up from 453 million in 2024, with total value reaching nearly 55 trillion Tanzanian shillings. Beginning in July 2026, several sectors will be required to accept digital payments.