Tanzania proposes higher levies on cigarettes and sugar to fund Universal Health Insurance

DODOMA:  MINISTER of Finance Ambassador Khamis Mussa Omar has announced that the government is proposing new revenue measures to support the financing of Universal Health Insurance by increasing levies on cigarettes and sugar.

Presenting the government’s revenue and expenditure estimates for the 2026/2027 financial year in Parliament, the minister said the proposed measures involve amendments to various laws and regulations aimed at expanding funding sources for the national health insurance scheme.

Among the proposed changes is an amendment to the Excise Duty Act (Cap. 147), which would increase excise duty by 20/- for every 1,000 cigarettes classified under HS Headings 24.02 and 24.03.

The government is also proposing amendments to the Sugar Act (Cap. 251) and its regulations to introduce an additional levy of 10/- per kilogram of sugar produced locally or imported into the country.

According to the minister, the levy will be collected by the Tanzania Sugar Board and remitted to the Universal Health Insurance Fund.

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“These measures are expected to increase government revenue by a total of 7bn/-,” Ambassador Khamis told Parliament.

The proposed reforms form part of the government’s broader efforts to secure sustainable financing for universal access to healthcare services across the country.