A Review of Tanzania’s Fiscal Regime for Climate Action

Objective of this report is to develop optimal levels of taxes, levies, and subsidies as domestic financial resources to achieve the targets under the FYDP III and NDC emission reduction targets. This includes an assessment of the potential of using taxes, levies, and subsidies for climate action (compared with the climate tax regimes of other countries); assessing the social, economic, and political impacts of current taxes, levies, and subsidies; and to propose options for a fiscal framework to achieve the national climate targets. The information presented in this report is based on a comprehensive triangulation of desk reviews, field visits, secondary analysis of data and expert interviews with key stakeholder institutions aimed at discussing the most feasible options for imposing such taxes in selected sectors. Proposed recommendations are drawn from experiences gained from other developing countries.
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