Business Correspondent<\/p>\n\n\n\n
HARARE \u2013 Zimbabwe’s controversial levy on fast food, introduced to promote healthier eating habits, has generated nearly US$1 million in revenue for the National Treasury since its implementation at the start of the year.<\/p>\n\n\n\n
The 0.5 percent tax, applied to items like pizza, burgers, French fries, and doughnuts, is designed to combat rising obesity and non-communicable diseases while bolstering government coffers.<\/p>\n\n\n\n
The figures were revealed in the National Assembly on Wednesday by the Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, during a Question and Answer session.<\/p>\n\n\n\n
\u201cI wish to advise that total collections from the fast-foods tax amounted to US$954,912,\u201d Mnangagwa stated.<\/p>\n\n\n\n
He clarified that while collections began in January, official accounting for the tax was only effective from March 2025 due to pending configurations on the Zimbabwe Revenue Authority (ZIMRA)’s Tax and Revenue Management System.<\/p>\n\n\n\n
Economists have largely supported the fiscal measure, viewing it as an effective tool for domestic resource mobilization.<\/p>\n\n\n\n
The tax is levied on a per-unit basis and is seen as a way to widen the government’s revenue base, facilitating funding for critical development projects.<\/p>\n\n\n\n
This new ‘sin tax’ follows the successful implementation of a sugar content tax last year, which has proven to be a significant revenue driver, generating over US$30 million in the first half of 2025 alone.<\/p>\n\n\n\n
While the fast-food levy has sparked public debate, authorities maintain its dual purpose: to discourage the consumption of unhealthy foods and to provide essential funding for national needs.<\/p>\n\n\n\n
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