Government targets junk food in new excise tax measures

Dar es Salaam. The government has announced sweeping new tax measures targeting a range of processed foods considered unhealthy, as part of efforts to improve public health outcomes and expand domestic revenue collection.

Unveiling the 2025/26 national budget in Parliament yesterday, Finance Minister Dr Mwigulu Nchemba proposed new excise duties on products such as crisps, ice cream, sausages, and margarine—citing growing concerns over obesity and lifestyle-related illnesses.

The new tax regime, which applies to both imported and locally produced goods, is also expected to raise over Sh166 billion in additional revenue for the government.

Crisps first on the menu

Under the new proposals, imported crisps will be subjected to an excise duty of Sh100 per kilogram, while locally made variants will be taxed at Sh50 per kilogram. The Finance Ministry estimates this measure could raise Sh6.47 billion.

“This is intended to discourage overconsumption of unhealthy snacks, support local producers, and reduce the burden of non-communicable diseases,” said Dr Nchemba.

Scoop of ice cream

Imported ice cream and edible ice will now attract a 10 percent excise duty, while locally manufactured products will face a 5 percent duty. This measure is forecast to bring in Sh119.47 billion.

Government officials say the tax is designed not only to curb rising sugar consumption but also to shield domestic manufacturers from unfair import competition.

Sausages and processed meats

Sausages and similar meat products will be taxed at 10 percent if imported, and 5 percent if produced locally. The projected revenue from this measure is Sh2.41 billion.

“Processed meats contribute to the growing prevalence of health complications, including heart disease. This policy also ensures a fairer market for Tanzanian producers,” Dr Nchemba said.

Heavy hit for margarine

Imported margarine will face a steep excise duty of Sh500 per kilogram. According to the ministry, this aims to protect local peanut butter producers by taxing margarine—a common alternative.

The government expects to collect Sh38.44 billion from this measure.

While the government frames the measures as both fiscal and public health interventions, analysts say the approach could spark debate over affordability and consumer rights.

The Finance Minister said the broader objective is to ensure sustainable revenue generation while encouraging healthier lifestyles and supporting local industries.

The proposed measures are now subject to parliamentary debate and, if passed, will come into effect at the start of the new financial year in July.