Zanzibar Skills Development Levy Rate Reduction: 4% to 3% Effective 1 July 2026
Zanzibar has enacted the Finance (Public Revenue Management) Act, 2026 (Act No. 2 of 2026), which amends several tax and revenue laws, including the Vocational Training Act, No. 8 of 2006. A key change from this Act is a reduction in the Skills Development Levy rate. These changes apply from 1 July 2026.
Skills Development Levy Rate Reduction: Effective 1 July 2026
Skills Development Levy Rate Change
- The Skills Development Levy rate applicable in Zanzibar is reduced from 4% to 3%.
- The amendment is made by section 20 of the Finance (Public Revenue Management) Act, 2026, which amends section 27(3) of the Vocational Training Act, No. 8 of 2006.
- The change applies only to Zanzibar.
- The Skills Development Levy rate for Tanzania Mainland is set separately and is not amended by this Zanzibar Act.
Skills Development Levy Rate Comparison
The following table shows the Skills Development Levy rate change for Zanzibar, effective 1 July 2026:
Levy Type Previous Rate (Before 1 July 2026) New Rate (From 1 July 2026)
Skills Development Levy (Zanzibar) 4% 3%
Who This Affects
All employers in Zanzibar who are required to pay the Skills Development Levy will benefit from this 1% rate reduction, effective 1 July 2026.
Important: Zanzibar vs. Tanzania Mainland
This rate reduction applies only to Zanzibar. The Skills Development Levy rate for Tanzania Mainland is set separately under different legislation and is not affected by this Zanzibar Act. If you have employees working in both Zanzibar and Tanzania Mainland, ensure you apply the correct levy rate to each location.
Legislative Background
The Finance (Public Revenue Management) Act, 2026 amends the Vocational Training Act, No. 8 of 2006 specifically through section 20, which modifies section 27(3) of the Vocational Training Act. The Skills Development Levy supports vocational training and skill development in Zanzibar. This 1% reduction reflects a policy adjustment to support employers whilst maintaining the training fund.
Zanzibar Skills Development Levy 2026: Official Resources
- Download the official Finance (Public Revenue Management) Act, 2026 and related documentation