ACT-Wazalendo faults new levies in proposed national budget

Dar es Salaam. Opposition party ACT-Wazalendo has raised concerns over the government’s proposed budget for the 2025/26 financial year, warning that newly introduced levies will further strain the already overstretched livelihoods of ordinary Tanzanians rather than offering relief.

Addressing a press conference in Dar es Salaam on Saturday, June 21, ACT-Wazalendo leaders—led by party leader Ms Dorothy Semu—said the government’s proposed Sh56.4 trillion budget, unveiled earlier this month by Finance Minister Dr Mwigulu Nchemba, fails to address pressing socio-economic challenges, especially for low-income earners.

The party’s detailed analysis focused on nine critical areas where, it claims, the budget falls short. These include shortages of teachers and classrooms, inadequate healthcare services, high costs of fuel, and the burden of increased taxation through new levies.

“This budget is not designed to ease the lives of struggling Tanzanians—it is adding weight to their backs,” Ms Semu said.

New levies under fire

ACT-Wazalendo took particular issue with the government’s proposed levies, among them a Sh10 charge on every litre of petrol, diesel, and kerosene—fuels that power much of the country’s economy and daily life.

“Such levies will inevitably drive up the cost of transport and commodities,” Ms Semu noted.

“Instead of easing the pressure, the government is increasing it.”

Other contested measures include a Sh500 charge on every train ticket and a rise in excise duty on electronic communication services from 17 percent to 17.5 percent—moves that the party says unfairly target low-income earners who rely heavily on mobile money services.

“We are calling on the government to withdraw all levies that hinder the growth of small businesses, artisanal mining, and domestic industries,” said Ms Semu.

What the government says

In his budget speech to Parliament on June 12, Dr Nchemba defended the new levies, citing reduced donor funding—particularly in the health sector—as a reason for seeking alternative revenue sources.

He said the government plans to channel 70 percent of the revenue generated from the new fuel levy to the Aids Trust Fund (ATF), and the remaining 30 percent to the Universal Health Insurance Fund.

Dr Nchemba also proposed additional charges of Sh1,000 on air travel tickets, aimed at supporting infrastructure and health sector initiatives.

Election budget scrutinised

ACT-Wazalendo also weighed in on the government’s allocation of funds for the upcoming October General Election. While the government has pledged a free and fair electoral process, the opposition party is urging vigilance.

“These are public funds and must not be misused to suppress citizens or manipulate outcomes,” said Ms Semu.

“We want an election that is genuinely democratic, not one orchestrated in favour of any particular party.”

The party also reiterated its concerns over recent amendments to electoral laws, saying they fall short of establishing a credible and independent electoral commission.

ACT-Wazalendo is calling for competitive recruitment of commissioners, as well as the removal of municipal directors from supervising elections, to ensure transparency.

“Election officials must be independently hired, party agents must operate without interference, and all candidates must be allowed to contest freely,” Ms Semu stressed.

Fuel prices and healthcare access

Shadow Prime Minister and ACT-Wazalendo Mainland Vice Chair Mr Isihaka Mchinjita expressed disappointment with the government’s persistence in levying fuel, despite already high prices.

“It’s troubling that instead of seeking sustainable solutions to rising fuel prices, the government is doubling down on taxing every litre,” he said.

He also criticised the government’s handling of healthcare, noting that high medical costs continue to entrench poverty among many Tanzanians.

“We’ve long called for government-funded universal healthcare. Expanding social protection from 1.8 million to 18.2 million Tanzanians would be a significant step,” said Mr Mchinjita.

Infrastructure funding ‘insufficient’

Meanwhile, ACT-Wazalendo’s Shadow Minister for Transport, Ms Halima Nabalang’anya, faulted the government for allocating what she described as inadequate resources to the road sector.

“There is too little allocated for new road construction, maintenance, and repairs,” she said.

“The budget also falls short in reviving stalled infrastructure projects crucial to national development.”

ACT-Wazalendo concluded its assessment by urging the government to revisit its fiscal priorities and formulate a budget that addresses inequality, safeguards public services, and promotes inclusive growth.

“Tanzanians deserve a budget that works for them—not one that adds to their burden,” Ms Semu said.