Trust Freddy
THE Government’s new 0,5 percent levy on fast-food items has generated nearly US$1 million in revenue in the first half of the year, a senior official has said.
This levy, commonly referred to as sin tax, seeks to promote healthier eating and combating a rise in obesity and non-communicable diseases.
It applies to popular fast-food items such as pizza, burgers, French fries and doughnuts.
During a Question and Answer session in the National Assembly on Wednesday, Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa confirmed the total collections.
“I wish to advise that total collections from the fast-foods tax amounted to US$954 912. While collections commenced in January 2025, accounting for the tax was effective from March 2025 due to the pending Tax and Revenue Management System and confederation process by ZIMRA,” he said.
Economists believe the introduction of the fast-food tax will widen Treasury’s revenue inflows and facilitate funding for development projects.
The tax, implemented at the beginning of the year, is levied on a per-unit basis for various fast-food items. It seeks to generate revenue for the Government while discouraging the consumption of unhealthy foods.
While the tax has generated intense debate, economists see it as an opportunity to bolster domestic resource mobilisation and address critical national needs.
This follows the success of the sugar content tax implemented last year, which has generated over US$30 million in revenue in the first half of this year.
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