By Kuda Pembere
Fast food outlets and restaurants will starting next year be levied a tax to promote healthy eating among Zimbabwean citizens.
Finance Minister Professor Mthuli Ncube proposed this tax while presenting the 2025 National Budget today.
Fast food joints and restaurants will be levied for coming up with products such as tacos, burgers and chips and amongst others.
The Finance Minister said the proposed tax comes after observing high consumption of fast-food products leading to non-communicable diseases.
“In view of the above, I propose to introduce a Fast Foods Tax on the value of the following food items sold by Fast Food Retail Outlets and Restaurants at a modest rate of 0.5% on the sales value, with effect from 1 January 2025 on Pizza, Burger and Hot dog; Shawarma, French fries Chicken; Doughnuts and similar products; and tacos,” he said.
Minister Ncube envisages the proposed tax will go a long way in encouraging operators to adopt culinary that promote healthy eating.
“Mr Speaker Sir, the consumption of highly processed food has been identified as one of the factors responsible for the prevalence of obesity and associated non-communicable diseases, hence, the need for Government to promote responsible consumption of such foods,” he said.
Meanwhile, following complaints from the beverage manufacturing industry about the sugar tax, the Finance Minster reduced the tax on cordials from US$0.001/gram to US$0.0005/gram. By September, the Finance Minister said, US$18 million
“Government, in February 2024, introduced a Special Surtax of US$0.001/g on added sugar contained in specified beverages. The tax is applied uniformly on both ready to drink and cordials or concentrated beverages.
“Representations from manufacturers indicate that cordials, due to their concentrated nature, have a higher sugar content, hence, attract a higher effective tax as compared to Ready to-Drink beverages.
“Common practice, however, requires that the tax be based on the sugar content of the diluted product.
“In order to create a level playing field between Ready-to-Drink beverages and cordials, I propose to review the Special Surtax on Beverages’ Sugar Content on cordials from US$0.001/g to US$0.0005/g, with effect from 1 January 2025,” he said.
