Zimbabwe’s Finance Minister, Mthuli Ncube, has raised the Fast Food Tax from the proposed 0.5% to 1%, doubling the rate before its official implementation on January 1, 2025. The unexpected change has caused confusion and sparked debate in Parliament, especially since it was not reflected in the original budget statement.
The increase was first highlighted by Corban Madzivanyika, MP for Mbizo, during a parliamentary session. Madzivanyika pointed out the discrepancy between the Finance Bill, which included the 1% tax, and the 2025 National Budget Statement, where the tax was initially set at 0.5%.
In response, Minister Ncube explained that the revision came as a result of recommendations from the Budget and Finance Committee. He claimed that the committee had proposed the 1% rate, which he accepted and incorporated into the final budget. However, the Committee’s official report appears to contradict Ncube’s statement, as it recommended a 0.5% tax, citing its minimal impact on consumption.
The introduction of the Fast Food Tax, aimed at generating revenue and promoting healthier lifestyles, has already raised eyebrows due to its impact on the cost of living. With the tax rate now doubled, questions are being raised about the transparency of the decision-making process.