The Tanzanian government has announced plans to establish a funding mechanism for the Universal Health Insurance (UHI) scheme by allocating a portion of the revenue generated from the gambling sector. This initiative aims to strengthen access to healthcare services for all citizens, regardless of their financial status.
Speaking during the presentation of the 2025/2026 Finance Bill, Finance Minister Dr. Mwigulu Nchemba revealed that tax rates on gambling activities have been increased to support the health sector. The betting tax rate has been raised from 10% to 12%, while the casino tax rate has increased from 12% to 13%.
Additionally, excise duties on alcoholic beverages have been adjusted, with increases of TSh 10, 15, and 25 per litre on beer, wine, and spirits respectively. Dr. Nchemba explained that these fiscal adjustments aim to generate revenue to fund healthcare services, including efforts to control the spread of HIV/AIDS and to expand the Universal Health Insurance fund.
“This measure will enable the government to extend healthcare coverage to ordinary citizens in both urban and rural areas, especially those unable to contribute to private health insurance schemes,” said Dr. Nchemba. He added that the move aligns with the Sixth Phase Government’s commitment to ensuring equitable and fair access to social services.
The government believes that this new revenue source will enhance the financial sustainability of the UHI fund and reduce reliance on the central government’s budget to finance health services.
This approach reflects Tanzania’s broader strategy to diversify funding for essential public services while addressing critical health challenges across the country.