Tanzania aims to raise Sh586.4 billion through new domestic taxes to close HIV and health financing gaps, as global donor support declines. The move marks a strategic shift in health financing.
Tanzania has announced plans to raise Sh586.4 billion through new domestic taxes to sustain its national HIV response and essential health services, following a steady decline in external donor support. This strategic shift reflects the country’s growing commitment to financing its own health system and reducing dependence on global partners.
The new revenue will help bridge critical gaps in health service delivery, particularly in HIV/AIDS programming, which has historically relied heavily on donor funding. According to officials, these taxes will contribute to securing life-saving medications, expanding prevention efforts, and improving service availability across the country. The move also aligns with Tanzania’s broader fiscal reforms under the National Health Financing Strategy.
While the decision has been welcomed by many public health advocates, concerns remain over the effective implementation and equitable distribution of the new tax burden. As the government works to operationalise this plan, transparent budgeting, efficient tax collection, and accountability mechanisms will be key to ensuring that the funds directly benefit the health sector and support progress toward universal health coverage (UHC).
