Dar es Salaam. The government has announced a raft of new measures aimed at empowering domestic salt producers and boosting the growth of the sub-sector, including a significant reduction in the annual rent fee for small-scale salt mining licences.
This was revealed by the minister for Minerals, Mr Anthony Mavunde, on July 15, 2025, during the closing session of a stakeholders’ meeting for the salt sub-sector, convened by the Tanzania Salt Producers Association (TASPA) in Dar es Salaam.
Mr Mavunde said the decision to reduce the annual rent for Primary Mining Licences (PMLs) from Sh45,000 to Sh20,000 per hectare had been reached following directives from President Samia Suluhu Hassan to respond to the concerns of local producers and create a more enabling business environment.
“Her Excellency President Dr Samia Suluhu Hassan has been a pillar of support for the mining sector and small-scale miners in particular. She instructed us to listen to your grievances and provide practical solutions. The reduction of the annual rent will significantly cut production costs and improve the quality of salt produced by smallholders,” the minister said.
In addition to easing licensing costs, the government is also taking steps to curb the influx of unregulated imported salt, a move that Mr Mavunde said has already contributed to an increase in local salt prices—ultimately benefitting domestic producers.
He noted that the recent introduction of a two percent withholding tax on raw salt sales, applicable to holders of PMLs, had been positively received by producers, replacing the previous income tax estimation method which many had criticised for being unpredictable and burdensome.
“This withholding tax has brought relief to many producers. It provides clarity and predictability, replacing a regime that often discouraged production due to unfair tax assessments,” he explained.
Mr Mavunde further disclosed that the state-owned mining company Stamico was in the final stages of completing a salt refinery plant, which is expected to significantly boost local salt value addition.
He directed the corporation to ensure the plant is completed and operational before the end of August.
The government’s latest interventions are part of broader efforts to position Tanzania as a key player in the regional salt market by harnessing local production capacity, promoting value addition, and protecting the interests of small-scale producers.
