By Kuda Pembere
Zimbabwe’s Ministry of Finance says it has raised US$8 million from the sugar tax regime that was introduced in 2024 National Budget presented as the country intensifies efforts to fund healthcare through home-grown initiatives.
The money raised is set to be channeled towards cancer treatment. This was revealed by the Health and Child Care Minister Dr Douglas Mombeshora during the Health Development Partners Coordination Forum Meeting on Friday.
There is an issue of sugar tax which I should mention now because yesterday (Thursday) I had also challenged the Minister of Finance in terms of how much the sugar tax is because from the beginning of the year, we have not yet utilized a cent. And yet sugar is utilized everyday,” he said.
“I am glad to say that yesterday, they said there is US$8 million now for us to utilize. But this is going to target procurement of cancer treatment machines and cancer treatment drugs.”
Since January 2024 when the sugar tax was effected amidst much opposition from beverage manufacturers, the Health and Child Care Ministry has been in the dark on the amount raised through the tax.
The sugar tax pronouncement saw sugar and beverage manufacturers initially being levied US$0.002 per gram sparking an outcry leading to a downward review to US$0.001 per gram in February after considering potential disasters it would bring to the industry viability and employment.
“We realised that the money was not coming and we engaged Treasury asking them to release the funds. The most important thing is to ask how much there is in the pocket. I think I mentioned about the US$8million for sugar tax. I only got to know that figure yesterday,” he said.
He said timeous monthly updates were important for the Health Ministry’s planning.
“So we were hoping that we get updated probably every month to say at the end of the month, we now have so much in the pocket,” the Health Minister said.
“To say at the end of the month, the pocket has grown so much. We also know how to plan to say we want to buy this equipment. To say we saved this much to buy equipment.”
Responding to a question by Embassy of Ireland programmes manager and Health Resilience Fund (HRF) co-chair Mr Dumisile Msimanga about how the airtime levy had raked in, the Minister said they were unaware of the amount disbursed. The airtime levy was introduced in 2014 where Treasury levies five percent excise duty on airtime for voice and data.
“In Government, we also go to Treasury looking for resources to use. About the airtime levy. We don’t know what happened. We realised that the money was not coming and we engaged Treasury asking them to release the funds. The most important thing is to ask how much there is in the pocket,” he said.
The Health Ministry Permanent Secretary Dr Aspect Maunganidze explained the airtime tax which used to be directly managed by his Ministry was later on co-opted into the Consolidated Revenue Fund where they now have to request for monies to use for equipment and other commodities.
“What you are calling the airtime tax used to be housed purely in the Ministry of Health and then according to the schedules and needs especially for equipment, we would draw from it. Since three or so years ago, all these funds are now in the Consolidated Revenue Fund.
“So now what we are supposed to do as Ministry especially when we have challenges in particular areas the HLF was set for, we specifically request to draw from that Fund.
“And we have been able to do it on quite a number of times,” he said.
About US$2 million is being realised every month from the airtime levy also known as the health levy, the Health Secretary said.
“The average amount of money which goes there is plus or minus US$2 million per month from the taxes we get everytime we tax.
“So that Fund is there. It is only that it is no longer totally housed in the Ministry but it is part of the Consolidated Fund. But we draw from specific items like your maternity, your blood, your equipment, your so forth,” he said.
