Africa-Press – Tanzania. MINISTER for Finance Dr Mwigulu Nchemba yesterday presented a set of proposed legislative amendments designed to introduce new domestic revenue streams to secure sustainable financing for critical health initiatives.
The proposals, presented during the unveiling of the 2025/26 National Budget in the National Assembly, aim to shore up funding for HIV prevention and control efforts while significantly contributing to the National Universal Health Fund (UHF).
Dr Nchemba said the measures are expected to increase government revenue by approximately 586.4bn/- , providing a vital financial boost for health initiatives.
He said the measures were urgent, citing recent global changes that have led to key development partners suspending financial assistance previously earmarked for the prevention and control of various diseases, particularly HIV/AIDS.
“The recent ongoing global changes resulted in key development partners suspending the financial assistance previously allocated for the prevention and control of various diseases, particularly HIV/AIDS,” he said.
Under the proposed framework, a substantial 70 per cent of the additional revenue generated will be remitted to the AIDS Trust Fund, with the remaining 30 per cent allocated to the UHF, this allocation ensures targeted support for these vital sectors.
The amendments include increasing excise duties on alcoholic beverages like beer will see a rise of 20/- per litre, wine and other fermented drinks will increase by 30/- per litre, spirits and liquors will be charged an additional 50/- per litre.
Furthermore, the excise duty on electronic communication services is proposed to increase slightly, from 17 to 17.5 per cent.
The government also plans to introduce a levy of 10/- per litre on fuel covering petrol, diesel and kerosene under the Roads and Fuels Toll Act.
Dr Nchemba said in the mining sector, a new levy of 0.1 per cent will be applied to the gross market value of minerals.
“Gaming taxes will also rise, with the winning tax on sports betting increasing from 10 per cent to 15 per cent, while taxes on land-based casinos will jump from 12 per cent to 15 per cent,” he said.
Additional measures include levies on imported vehicles and heavy machinery, with charges varying depending on engine capacity and type.
For instance, vehicles with engines up to 1000cc will incur a levy of 50,000/- , increasing progressively to 200,000/- for vehicles with engines over 2501cc.
Heavy machinery such as excavators and bulldozers will be subject to a 250,000/- levy.
Moreover, transportation levies will be introduced, with a 500/- charge on train tickets and a 1,000/- charge on airline tickets.
In the current fiscal year, the National Assembly approved the introduction of 10 per cent excise duty on betting, gaming and national lottery stakes, with the funds ring fenced for the UHF.
This move aimed to bolster government revenue for financing Universal Health Coverage, ultimately enhancing healthcare accessibility for individuals unable to afford it.
On water services, he proposed introducing a customs duty relief through a duty remission scheme at a rate of 0 per cent instead of the current 10 or 25 per cent for one year on raw materials used to manufacture plastic pipes (glass reinforced plastic pipes).
“The aim of this measure is to provide relief to local manufacturers of these pipes in order to reduce production costs and facilitate the construction of water infrastructure,” he said.
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