Tanzania’s Parliament has approved the Finance Bill 2025 following its presentation by Finance Minister Dr. Mwigulu Nchemba on Wednesday, June 25, marking a significant step toward implementing the government’s TSh 49.35 trillion national budget for the 2025/26 fiscal year.
Tabled in the National Assembly in Dodoma, the Bill introduces amendments to various tax and financial laws, laying the legal groundwork for the execution of budgetary priorities unveiled earlier this month.
“The Bill aims to align our tax framework with the government’s strategic goals for revenue generation, investment promotion, and improved public service delivery,” said Dr. Nchemba while presenting the legislation.
Among the key highlights of the Finance Bill 2025 is the proposed introduction of a mandatory travel insurance scheme for foreign visitors entering the country. If passed into law, the amendment to the Insurance Act will require every visitor to purchase a government-sanctioned travel insurance policy at a fixed rate of $44, a move expected to enhance protection for tourists while deepening insurance penetration in the domestic market.
In a separate proposal aimed at expanding the excise tax base, the government has recommended the introduction of a TSh 134.2 per litre excise duty on domestically produced energy drinks containing caffeine levels not exceeding 300 parts per million. The measure seeks to generate additional revenue while promoting public health through responsible consumption.
These changes are part of broader fiscal reforms that include adjustments to income tax, VAT, and sector-specific levies aimed at improving compliance and ensuring equitable contribution from economic actors.
The Finance Bill 2025 follows the approval of the national budget on June 24 and is expected to take effect on July 1, 2025, marking the start of the new fiscal year.
Lawmakers praised the Bill’s focus on revenue expansion without overburdening low-income citizens. “This Bill demonstrates the government’s commitment to smart taxation—targeting sectors with growth potential while safeguarding social welfare,” said one MP during the debate.
With the passage of this Bill, the government is set to roll out new and revised tax measures that will shape Tanzania’s economic landscape in the year ahead.