By Dr Temu

Tanzania has taken a bold step in strengthening domestic health financing through the introduction of the HIV Response Levy under the Finance Act, 2025. This innovative mechanism reflects a growing recognition that the fight against HIV/AIDS requires not only international support, but also consistent, predictable, and homegrown financial commitments.

A Multi-Sectoral Approach to Public Health

The HIV Response Levy is not a standalone tax, but a composite of levies charged across a wide array of economic activities. It is designed to channel resources directly into the AIDS Trust Fund, which is established under the Tanzania Commission for AIDS Act (Cap. 379).

According to the new amendments introduced by the Finance Act, the levy is now collected from various sources, including:

  • The mining sector,
  • The first registration of motor vehicles,
  • Train ticket purchases,
  • The sale of beer, wine, and spirits,
  • Petrol, diesel, and kerosene, where the levy is charged on every litre consumed,
  • A portion of the airport service charge for both domestic and international travelers,
  • Taxes on gaming and sports betting winnings.

All monies collected through these avenues are earmarked for the AIDS Trust Fund, with additional allocations directed to the Universal Health Insurance Fund. The Tanzania Revenue Authority is expressly mandated to collect and remit these funds on a monthly basis.

A Model for Domestic Resource Mobilization

This multi-channel levy represents a forward-looking public policy tool—broad-based, integrated into existing tax systems, and targeted towards a critical public health need. It offers an important pathway to reduce donor dependence, ensure continuity of services, and promote equity in the distribution of the financial burden across society.

By linking public health financing to sectors such as energy, transportation, alcohol, mining, and gaming, the HIV Response Levy also reinforces a shared responsibility model—one in which every economic actor contributes to safeguarding national health.

Conclusion

Tanzania’s HIV Response Levy is a landmark development in the journey toward universal health coverage and epidemic control. It demonstrates how fiscal law can be aligned with health goals, and how domestic policies can be leveraged to meet the needs of vulnerable communities.

What remains is for implementation to be guided by transparency, accountability, and impact-driven planning. If done right, this model could become a case study in sustainable HIV financing—not just for Tanzania, but for the region at large.

This article is not intended to replace professional advice. No one should rely exclusively on the information provided as a substitute for seeking professional advice. The writers or the Firm are not liable for any use of the information contained herein and do not guarantee the accuracy of its contents from the date of publication to the date of usage. For contact: temu@africorp.co.tz

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