EU, UNCDF to push for tax relief on clean cooking appliances
DAR ES SALAAM: THE United Nations Capital Development Fund (UNCDF), through the CookFund Programme funded by the European Union Delegation (EUD) in Tanzania, will today in Dar es Salaam host the second in its series of high-level policy dialogues.
The dialogue will focus on the theme “Tax Impact on Acceleration of National Clean Cooking Strategy.”
This forum will bring together public and private sector clean cooking stakeholders, to identify the current tax landscape, share challenges and develop actionable solutions to accelerate the adoption of clean cooking technologies in Tanzania.
Several ministries and government agencies will represent the public sector, while key development partners and private sector organisations, including the European Union, Tanzania Private Sector Foundation (TPSF), PwC, and various clean cooking companies and enterprises, will represent the private sector.
The recently launched National Clean Cooking Strategy outlines the government’s goal to reduce taxes and levies on clean cooking appliances and energy-efficient stoves by June 2026, further enhancing affordability.
Head of UNCDF Tanzania Peter Malika, stated that the organisation is committed to advocating for policy frameworks that support tax relief and incentives for clean cooking solution enterprises in Tanzania.
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Malika further remarked, “We are hosting this forum to address gaps and explore opportunities for tax incentives and subsidies that can bolster businesses in the clean cooking sector. Our aim is to foster growth and expand access to clean cooking solutions for more Tanzanian households.”
Clean cooking is a critical national priority, affecting every Tanzanian household. Sustainable cooking solutions are vital for improving socio-economic conditions, particularly for women and youth who face challenges related to safety and affordability with traditional methods like firewood and charcoal.
The European Union (EU) is supporting this transition with €19.4 million through the CookFund Programme, providing grants to SMEs that offer clean cooking solutions, transitioning public institutions to cleaner fuel and appliances and national level awareness campaign.
“The current tax structure impacts the entire clean cooking value chain, affecting both companies and end-users. This dialogue is crucial for identifying challenges and developing collaborative solutions to advance the National Clean Cooking Strategy 2024-2034.”
Building on the insights from the previous dialogue, today’s forum provides a platform for stakeholders to identify partners to support their existing initiatives and highlights areas where they can help to address the challenges faced by others.
This collaborative effort supports the government’s ambitious goal, led by President Samia Suluhu Hassan and the Ministry of Energy, to ensure 80 per cent of the population uses clean cooking solutions by 2034.
