Business Correspondent in Parliament
Harare – The broke Government of Zimbabwe is move is phishing for money from whatever is left from its harpless citizens by broadening the tax base far and wide.
Finance Minister Mthuli Ncube has announced a new 0.5% tax on the sales value of various fast foods, including pizza, burgers, and hot dogs, during his presentation of the 2025 National Budget at the New Parliament in Mt Hampden, yesterday Thursday.
This tax will take effect on January 1, 2025.
Ncube explained the rationale behind the new tax, saying,
“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.”
The list of taxable items includes shawarma, French fries, chicken, doughnuts, and tacos.
In addition to the fast food tax, Ncube also introduced a 10% withholding tax on gross winnings from sports betting. He noted,
“Sports betting punters currently receive income from winnings, which is not taxable under Personal Income Tax. To include punters in the tax base, I propose to introduce a 10% withholding tax on gross winnings, effective January 1.”
Since taking office in November 2017, Ncube has implemented several controversial taxes that have drawn criticism from the financially burdened Zimbabwean populace. While the government aims to diversify its revenue sources through these new taxes, concerns have been raised about the potential negative impacts on the economy and society.
Critics argue that high tax rates can deter investment and reduce consumer spending.
“Over-taxation can have several detrimental effects on both the economy and society,” warned an economic analyst.
“When individuals face heavy taxation, they have less disposable income to spend on goods and services, which can dampen consumer spending and negatively impact businesses.”
Furthermore, there are concerns that an over-reliance on high taxes for revenue could lead to inefficiencies in government spending and a lack of fiscal discipline.
As Mnangagwa’s Second Republic continues to navigate these complex economic challenges, the implications of these new taxes will be closely monitored by both citizens and economists alike.
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