Among key provisions, the Bill has amended Section 18 of the AIDS Commission Act, Cap 379, to recognise additional sources of revenue for the AIDS Trust Fund.

The fund will now benefit from excise duties on alcoholic beverages, a new HIV Response Levy on minerals and charges on train and airline tickets.

Dr Mwigulu said the government aims to strengthen the national response to HIV/AIDS and accelerate the provision of universal health insurance. Apparently, it is part of the government’s response to US aid cuts.

The government has also amended the Universal Health Insurance Act, Cap. 161, whereas section 25 now recognises new sources of revenue for the Universal Health Insurance Fund to finance various health services.

The new sources include revenues from excise duty on alcoholic beverages, the HIV Response levy on minerals and charges on train and airline tickets.

The government has also amended the Airport Service Charge Act, Cap. 365, increasing the charge levied on each air passenger by 1,000/-.

According to the Bill, 70 per cent of the additional revenue collected from the charge will be channeled to the AIDS Trust Fund, while 30 per cent will support the Universal Health Insurance Fund.

Meanwhile, the government has increased excise duty on alcoholic products, with beer, wine and spirits facing hikes of 20/-, 30/-, and 50/- per litre respectively.

Again, revenue from these increases is intended to strengthen the country’s healthcare system, particularly in areas such as HIV/ AIDS prevention and the expansion of universal health insurance.

The Bill has imposed massive reduction in excise duty on locally produced energy drinks from 561/- to 134.2/- per litre.

The government says the reduction aims to align tax rates with actual production costs and offer much-needed protection to small and emerging beverage producers.