Story by Yolanda Moyo
Economists are expecting the introduction of the fast food tax to widen Treasury’s revenue inflows and facilitate funding for development projects.
The tax, which was effected this month, is levied per-unit basis for various fast-food items and aims to generate revenue for government while discouraging the consumption of unhealthy foods.
While the tax has generated intense debate, economists believe it presents an opportunity to bolster domestic resource mobilisation and address critical national needs.
“This tax provides a valuable new revenue stream for the government. These funds can be strategically utilized to address critical national priorities such as infrastructure development, healthcare, and education. This aligns with global trends that have been successful implemented in reducing consumption of fast foods,” said economist, Mr Stevenson Dlamini.
“The proceeds from this tax can be used to strengthen primary healthcare, combat non-communicable diseases linked to unhealthy diets, and improve nutrition education programmes. This will not only improve public health outcomes, but also contribute to a more productive and healthier workforce. This will be crucial in research and development in the NDC field helping the nation in fight this scourge,” said economist Mr Malorn Gwadu.
This comes after the sugar content tax implemented last year was a huge success, generating more than US$30 million in revenue.
“This year we introduced the sugar tax, we have collected over US$30 million earmarked to deal with cancer issues and cancer response programmes. We have managed well in terms of tax collection. This has been directed towards the health sector. We have really been focused to improve the access to drugs quality of equipment and in the 2025 budget we have made sure the amount is close to the Abuja target,” said the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube.
By strategically utilising the generated revenue, government is set to make significant strides in improving public health, enhancing human capital, and strengthening social and economic infrastructure, thereby contributing to sustainable economic growth and improved quality of life for all Zimbabweans.
