Prospects of Leasing in Tanzania Environment
M. Y. Bishagazi (The Institute of Finane Management, Dar es Salaam)
Download Article | Published On 01/07/1997


Leasing has never featured in Tanzania even though this financing option could be ideal given the prevailing tax laws and the mode of financing. The tax law prevents most of businesses from depreciating their assets. If their financing was in the form of leases then lease rentals would provide tax shield which is not available in the form of depreciation tax shield. And business organizations which use loan finance would charge both the capital portion and interest as business expenses in the form of lease rentals. This paper dwells on these issues after the basics of leasing have been reviewed

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