Treasury’s proposed fast-food tax sparks debate

THE Treasury’s proposal to introduce a fast-food tax in the 2025 National Budget has drawn mixed reactions from stakeholders, including businesses and policymakers.

Set to take effect on January 1, 2025, the tax will impose a 0,5 percent levy on the sales value of fast-food items such as pizza, shawarma, burgers, hot dogs, French fries, chicken, doughnuts, and tacos.

The initiative aims to encourage healthier eating habits among Zimbabweans.

Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, defended the proposal, citing the growing prevalence of obesity and non-communicable diseases linked to the consumption of highly processed foods.Best restaurants near me

However, the proposal has faced criticism from some quarters. Speaking in Parliament, Chairperson of the Portfolio Committee on Budget, Finance, Economic Development, and Investment Promotion, Cde Clemence Chiduwa, noted opposition from the Confederation of Zimbabwe Retailers (CZR).

“CZR proposed the removal of the proposed tax on fast foods and betting tax which seem to target the poor. There are a number of taxes such as VAT, IMTT and the proposed fast-food tax which further burdens the poor,” reads part of the submission from CZR.Best restaurants near me

CZR also raised concerns about the lack of stakeholder consultations and questioned the effectiveness of the tax in addressing obesity.

“The proposed tax could lead to higher retail prices, pushing consumers towards self-catering without necessarily reducing fast-food consumption. This would slow business for retail outlets and restaurants while failing to achieve the intended health benefits,” CZR said in its submission.

Some fast-food outlets have already begun adapting to the anticipated tax, making changes to packaging and portion sizes.

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