Business Reporter
The recent collection of US$24 million by Zimbabwe’s Treasury from the beverages sector through the sugar tax has ignited discussions about expanding “sin taxes” to include a broader range of products that negatively impact public health.
Sin taxes are levies imposed on goods deemed harmful to health and societal well-being, and they are viewed as essential for enhancing health services while discouraging the consumption of unhealthy products.
Benefits of the Sugar Tax
During a recent address at the 2025 Pre-Budget Seminar in Bulawayo, Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube emphasized the positive outcomes of the sugar tax. He noted that all funds generated from this tax are specifically allocated for the procurement of cancer diagnostic equipment and essential medicines. From January to September 2024, the government raised US$24 million, which is being utilized to enhance cancer treatment capabilities in the country.
Expanding Sin Taxes
Given the success of the sugar tax, there is a growing argument among experts for the expansion of sin taxes to other harmful products, such as alcohol and tobacco. This expansion could provide a significant boost to Zimbabwe’s strained healthcare system, which is facing challenges in addressing non-communicable diseases. The World Health Organisation reports that non-communicable diseases, including heart disease, stroke, cancer, diabetes, and chronic lung disease, account for 74% of all global deaths, underscoring the need for urgent protective measures against harmful products.
Minister Ncube’s Caution on Alcohol
While advocating for the expansion of sin taxes, Minister Ncube has urged caution regarding alcohol taxation. This reflects a balanced approach to public health and economic considerations, recognizing the potential social implications of increasing taxes on alcohol.
In summary, the successful implementation of the sugar tax has opened the door for broader discussions on sin taxes in Zimbabwe, with the potential to significantly improve public health funding and outcomes.
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