DODOMA, June 12 -- THE government has set in motion one of its most ambitious tax overhauls in recent years, unveiling a 2026/27 package expected to generate an additional Sh1.72trn while quietly redrawing the boundaries of who pays what in the economy.

The Finance Bill 2026 may appear to be a routine fiscal adjustment. In reality, it represents a deliberate and strategic move by the government to strengthen the national revenue base while fostering a culture of formalisation, fairness, and compliance.

Anchored on the twin objectives of expanding domestic revenue mobilisation and encouraging behavioural change across sectors that have historically operated on the fringes of the formal economy, the Bill introduces targeted incentives for...