Zimbabwe's finance minister has tabled the 2025 budget, sparking a series of controversies. According to the document, the new tax will be introduced in the country from January 1st. The rate is 0.5 percent. Applies to fast food sales. The official reason for this decision is a desire to promote healthy habits. However, it is a well-known fact that this also aims to repair the country's dire finances.
According to the 2025 Budget presented by Mthula Ncube, the fast food tax will apply to pizza, hamburgers, French fries, fried chicken, hot dogs and donuts. The new interest rate is 0.5 percent. The sales amount will be applied from January 1st. This product is sold at retail stores and restaurants.
Zimbabwe introduces tax on fast food
In its justification, the government said the main motivation behind this unpopular decision among the public was a desire to combat the obesity problem and “encourage responsible consumption of highly processed foods.” It states that there is.
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However, in reality, the country faces other serious challenges, such as the national budget being tight and in dire straits. For this reason, Ncube has already introduced the following equally controversial taxes since 2017: From indirect remittances.
But economists say excessive taxation could have far-reaching effects, including lower investment and slower economic growth. Others argue that overreliance on taxes can lead to inefficient public spending and poor budget management.
Zimbabweans were furious. new taxes sparked anger
Taxes on fast food are primarily levied on consumers, forcing businesses to pass on additional costs to consumers. Zimbabweans are therefore not afraid to criticize new solutions, writing on social media: “The problem of obesity exists in our country, but only at the government and parliamentary level.”
Furthermore, they believe that the focus should be on reforms that ensure food security and access to affordable and nutritious food.
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Zimbabwe, like neighboring southern African countries, was affected by El Niño drought last year. In mid-year, the government announced it was 57%. People living in rural areas of the country will face serious problems accessing food from January to March 2025.
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