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Iringa Forest Levy Faces Growing Backlash After Two Years

  //business-finance.news-articles.net/content/202 .. levy-faces-growing-backlash-after-two-years.html
  Published in Business and Finance on Tuesday, February 3rd 2026 at 6:00 GMT by The Citizen
      Locale: TANZANIA UNITED REPUBLIC OF

Iringa Still Reeling as Forest Levy Enters Second Year: Impacts Deepen, Calls for Review Intensify

Iringa, Tanzania - February 3, 2026 - Two years after its implementation, the Tanzania Revenue Authority's (TRA) 2% levy on forest produce continues to be a source of contention in the Iringa region. Originally introduced on February 1, 2024, the levy, intended to boost revenue and support sustainable forestry, has demonstrably failed to achieve consensus, with concerns over its economic impact and lack of community consultation persisting and even escalating.

The initial promise, according to the TRA, was a dedicated funding stream for reforestation efforts, improved forest management practices, and enhanced monitoring to combat illegal logging. Ms. Amina Rashid, a TRA spokesperson at the time, framed the levy as aligning with "international best practices" and ensuring the "long-term health of the country's forests." However, a comprehensive review conducted by this publication reveals a far more complex and troubling picture.

The levy has placed significant strain on small-scale timber merchants, woodcarvers, and communities dependent on forest resources. Mr. John Mbilinyi, the timber merchant quoted in early reports, reports his business has contracted by nearly 40% since the levy's introduction. "We've had to reduce our workforce," Mbilinyi explained, "and we're barely breaking even. The increased costs are passed onto the consumer, further reducing demand. The TRA seems oblivious to the real-world consequences."

Beyond timber, the levy impacts a wide range of forest products, including firewood, charcoal, medicinal plants, and fruits - all crucial for the livelihoods of many Iringa residents. The rising costs have forced some to seek alternative, often unsustainable, methods of income generation, leading to concerns about increased deforestation in unprotected areas. Several community leaders report a noticeable increase in illegal charcoal production as people attempt to circumvent the levy.

The promised benefits - the enhanced reforestation and forest management programs - have been slow to materialize. While the TRA reports a modest increase in revenue collected from the forest sector, transparency regarding how those funds are allocated remains a significant issue. Local advocacy groups claim the funds are being diverted to other government priorities, with little evidence of direct investment in Iringa's forests.

"We were promised a dedicated fund for our region," stated Ms. Zawadi Hamisi, a representative of the Iringa Forest Users Association, "but we've seen no tangible results. The roads remain poor, our forest rangers are understaffed and lack adequate equipment, and the reforestation programs are insufficient to address the scale of deforestation."

Regional Commissioner Ombeni Sanga's initial pledge to mediate a solution appears to have stalled. While several meetings were held with stakeholders in 2024, no meaningful concessions were made. The Commissioner's office now cites "budgetary constraints" and "national policy directives" as reasons for the continued implementation of the levy.

Furthermore, critics point to a lack of effective enforcement of existing forestry regulations. Despite the increased revenue generated by the levy, illegal logging persists, undermining the very goals the TRA claimed to pursue. This has fuelled accusations of corruption and a lack of political will to address the root causes of deforestation.

The situation in Iringa is not unique. Several other regions in Tanzania relying heavily on forest resources have voiced similar concerns about the impact of the levy. This highlights a broader issue of policy implementation without adequate consideration for local contexts and stakeholder engagement. A recent report by the Tanzania Resource Governance Network (TRGN) recommends a comprehensive review of the levy, coupled with a participatory approach to policy-making that prioritizes the needs of local communities and the sustainability of forest ecosystems.

The TRGN report advocates for alternative revenue generation models, such as ecotourism initiatives, value-added processing of forest products, and payments for ecosystem services, which could provide a more sustainable and equitable path forward. Without a fundamental shift in approach, the 2% levy risks exacerbating poverty, accelerating deforestation, and further dividing communities in Iringa and beyond.