Dennis Lobuntu Ndlovu
Business Reporter
www.zimgbcnews.co.zw
The Zimbabwean government collected USD$954,912 from the fast food tax between January and June 2025, the Ministry of Finance, Economic Development and Investment Promotion has revealed.
The figure was disclosed by the Deputy Minister of Finance, Economic Development and Investment Promotion, Hon. David Kudakwashe Mnangagwa, during a parliamentary session on Thursday 10. He was responding to a question from Hon. Descent Bajila, the Member of Parliament for Emakhandeni-Luveve constituency, who sought clarity on the revenue generated since the introduction of the levy.
“I wish to advise that total collections from the fast foods tax amounted to USD$954,912,” said Deputy Minister Mnangagwa.
He clarified that while revenue collection began in January 2025, official accounting only became effective in March due to pending configurations of the Tax and Revenue Management System (TAMS) and a consolidation process by the Zimbabwe Revenue Authority (ZIMRA).
Hon. Bajila pressed further, questioning whether fast food operators were taxed retroactively to cover the gap between January and March, and if those backdated collections were included in the reported figure.
In response, Deputy Minister Mnangagwa confirmed that tax collection was implemented from January, despite the delay in formal accounting.
“Collections started in January 2025 this USD$954,912 is from January to June 2025,” he affirmed.
The fast food tax is part of broader fiscal reforms introduced in the 2025 National Budget aimed at expanding Zimbabwe’s tax base. The policy targets the growing fast-food industry, which has seen a boom across urban centres, particularly among youth and working-class consumers.
In a separate development, the government confirmed it has not yet begun collecting revenue from the proposed Wealth Tax. Deputy Minister Mnangagwa stated that implementation has been temporarily suspended pending the finalisation of administrative and legislative processes.
Responding on behalf of the ministry, he explained that although the legislation was introduced, the tax has not been enforced due to ongoing consultations and technical preparations.
“Since the introduction of legislation requiring selected wealthy individuals to contribute to the fiscus through a wealth tax, our Government temporarily shelved the implementation thereof, pending conclusion of requisite administrative modalities informed by concerns raised by some stakeholders,” said Hon. Mnangagwa.
He added that once the implementation modalities and legislative amendments are finalised, they will be tabled before Parliament for approval, paving the way for revenue collection to begin.
In a follow-up question, Hon. Bajila questioned the logic of maintaining the legislation without an operational mechanism to collect the tax. He suggested it might be more practical to repeal it and reintroduce it once the necessary legal instruments are in place.
“At the present moment, there is no way that tax can be collected and it is unlikely to be a way anytime soon,” he argued.
However, Hon. Mnangagwa countered that both positions were aligned in intent.
“We are almost saying the same thing. We have temporarily shelved it until the administrative modalities have been sorted out,” he said.
He emphasized that repealing the legislation only to bring it back later would still require Parliamentary approval. Therefore, he argued, it made more sense to amend the existing law once all consultations and frameworks are complete.
“Until the modalities, both administratively and legislatively, have been refined… these amendments will come before this august House,” he said.
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