Arusha – The United Republic of Tanzania ratified the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) in 2007, thereby committing to the obligations of this international treaty. The WHO FCTC Article 6 calls on Parties to implement price and tax measures to make tobacco products less affordable, thus protecting the population’s health.
By taking appropriate fiscal policy changes in tobacco taxation, it is possible for the country to generate significant tax revenue that would support the domestic financing of health and other development programmes. This is critical at this time when there is reduced external funding for health programmes.
To guide discussions pertaining the adoption of excise taxes during the 2026/2027 Financial Year, the Tanzanian Parliament requested WHO’s technical and financial assistance to deep dive into tobacco taxation – the most cost-effective measure to reduce tobacco consumption.
The Ministry of Health in collaboration with WHO HQ, Regional and Country Offices, convened a three-day working meeting of technical experts for capacity building on the utilization of the WHO Tax Simulation Model (WHO-TaXSiM) to provide an accurate analysis of the tobacco tax policy and propose options for tax reforms that benefit both people’s health and the Government’s domestic revenue mobilization.
Technical experts were from the President’s Office, Prime Minister’s Office, Parliament, Ministry of Finance and Planning, Revenue Authority, Ministry of Industry and Trade and Ministry of Health. The WHO TaXSiM Model workshop on tobacco products focused on cigarettes and assessed current excise systems through tax data analysis and modeling. A report with recommendations for changes in the tobacco tax policy was produced and will be tabled to relevant authorities for consideration.
Tobacco use imposes a substantial and preventable burden in terms of mortality and economic losses. In Tanzania, tobacco use is responsible for more than 21,800 deaths annually, reflecting its significant contribution to premature mortality and non-communicable diseases. The economic impact is equally profound. Direct health-care expenditures attributable to tobacco use amount to approximately TZS 110 billion per year, placing a considerable strain on the health system. In addition, productivity losses due to tobacco-related morbidity and premature mortality are estimated at TZS 373 billion annually. The economic valuation of tobacco-attributable mortality further accounts for TZS 337 billion.
Raising taxes on tobacco products which leads to increases in their price makes tobacco less affordable. When tobacco becomes less affordable people use it less and youth initiation is prevented. Because youth and low-income groups are more responsive to increases in tobacco prices, they disproportionately enjoy the health and economic benefits of quitting and not starting. Saving lives with tobacco taxes lessens the enormous healthcare burden and economic losses that result from tobacco-related disease. Tobacco taxation is also relatively inexpensive to implement and generates significant revenues over the short and medium term.