Zanzibar’s latest tax reforms have sparked widespread concern among poultry importers, retailers, and consumers after the government introduced a sharp increase in duties on imported chicken. In a bold move revealed in the 2025/2026 budget, Finance and Planning Minister Dr. Saada Salum Mkuya announced that import taxes on chicken and fish will rise from TSh 300 per kilogram to a staggering TSh 1,000 per kilogram.
The government says the objective is to promote local production by discouraging cheap imports that often undercut domestic farmers. Authorities believe the move will inject new life into the local poultry and fishing sectors, stimulate employment, and strengthen food security in the region. The expected revenue from the new tax stands at over TSh 7.25 billion, which will be used to support economic development programs.
However, the policy has elicited conflicting reactions. While local producers and farmer associations have applauded the move, importers and small-scale dealers have expressed concern about the prospective price increases. Many Zanzibaris are concerned that the cost of chicken, a major protein, may climb beyond the grasp of average people. This would put further hardship on low-income households, which already face high living costs.
Critics contend that, while the objective is to preserve local industries, the reality could be more complex. Zanzibar’s domestic chicken production is still in its early stages, and stakeholders are concerned that it would be unable to fulfill the unexpected spike in demand if imports become pricey. Without an appropriate supply, costs may rise, resulting in shortages or causing consumers to seek less healthy options.
Traders in local markets are concerned that the tax hike was implemented too soon. They caution that without a transition period or complementary measures, like as subsidies for local producers or investment in poultry infrastructure, the policy risks distorting the market and hurting end users.
Economists point out that if the goal is to build a sustainable local poultry industry, the government must go beyond taxation. Key areas needing attention include affordable feed, access to veterinary services, improved breeding facilities, and cold chain logistics. Without these, raising taxes on imports might only lead to higher food prices without achieving the desired growth in local production.
Additionally, the new tax is part of a broader set of fiscal changes introduced in the budget. These include increases in excise duties on alcoholic beverages, fuel levies, and a new infrastructure tax on bottled water. The government has positioned these changes as necessary steps to raise domestic revenue and fund key development initiatives, including roads, water access, and public services.
Still, the success of the poultry tax reform will depend largely on how effectively the government can support the growth of local producers while maintaining stable food prices. For now, traders and households in Zanzibar are bracing for what could be a turbulent period in the poultry market.
