mbulelo smpofu
Marshall Ndlela, mefrischool@gmail.com
IN a progressive move to improve public health and reinvigorate the country’s healthcare system, the Government, through the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube, has proposed a suite of new taxes in the 2025 budget aimed at addressing both health and economic challenges.
Among these, the introduction of a fast food tax on the sale of unhealthy food items emerges as a critical initiative to curb the proliferation of poor dietary choices, alongside taxes on betting, plastic bags, and rental income. This comprehensive fiscal adjustment is one of the most promising strategies to tackle the dual crises of public health and economic fragility that have besieged Zimbabwe for over a decade.
The appreciation for the recent fiscal adjustments introduced by Prof Ncube cannot be overstated. A 0.5 percent tax on the sales value of fast food items, including pizza, burgers, chips, and hot dogs, represents a necessary intervention in a nation grappling with skyrocketing chronic diseases linked to unhealthy eating habits. The cultural significance of healthy eating in African societies has often been overshadowed by the encroachment of Western diets, particularly the consumption of genetically modified organisms (GMOs) and processed junk food.
As Zimbabweans contend with rising rates of obesity, heart disease, and related issues, there is an urgent opportunity to realign national dietary preferences towards traditional, wholesome foods.
The repercussions of poor dietary choices are grave. Increasing obesity rates have led to alarming fatalities due to related health issues, including hypertension, asthma attacks, chronic ailments like diabetes, and cardiovascular diseases. The World Health Organisation has classified rising obesity rates as a global epidemic, and Zimbabwe is no exception. In a country struggling with its healthcare system due to years of sanctions, addressing obesity and its associated health risks is critical.
Sanctions imposed on Zimbabwe have precipitated a deterioration of the healthcare infrastructure, leaving it ill-equipped to handle public health crises. The burden of rising chronic health issues falls disproportionately on impoverished communities, amplifying the social inequity already prevalent in the nation. As the Government seeks to stabilise the economy, the implementation of new taxes —including a 10 percent withholding tax on gross winnings from sports betting and a 25 percent tax on rental income from properties converted from residential to business use —can provide much-needed revenue.
The proposed fast food tax aims to collect additional revenue to bolster the healthcare system and combat the societal costs associated with junk food consumption. The funds generated from this tax could support healthcare facility improvements, fund health education campaigns, and enhance the availability of healthy eating alternatives. Additionally, a 20 percent tax on plastic bags will encourage the use of environmentally friendly alternatives, tying health with sustainable practices. Furthermore, a clearer classification of sugary and processed foods as demerit goods — products that inflict greater social harm than private benefit — must be upheld. In economics, the taxation of such goods typically discourages consumption and promotes healthier eating habits.
Countries like the UK and South Africa have pioneered similar initiatives with notable success. The UK’s introduction of the Soft Drinks Industry Levy (SDIL) serves as an example. The proceeds have been funnelled into the Healthy Pupils Capital Fund, supporting schools in upgrading sports facilities and providing healthier options. Similarly, South Africa’s Health Promotion Levy on sugary drinks aims to combat health issues through fiscal measures. However, critics argue that the 0,5 percent tax implemented in Zimbabwe on fast foods remains minimal, with advocates suggesting a rate closer to three percent for a more significant impact.
Despite the potential positive outcomes, there are detractors. Opposition parties have voiced dissent against the introduction of the fast food tax, arguing that it could further burden consumers. Yet, a rational understanding of public health economics illuminates the benefits of such a policy; the collective savings in healthcare costs and improvements to public well-being far outweigh the temporary inconvenience to consumers. Moreover, the Government should consider extending tax measures to commercialised social media influencers and content creators who capitalise on Zimbabwean markets without contributing to tax revenues. This includes a potential social media tax that could fund health initiatives and promote healthier lifestyles among the populace.
In conclusion, the comprehensive suite of taxes introduced in the 2025 budget — including the fast food tax — presents a pivotal opportunity for Zimbabwe to foster a healthier population while addressing urgent challenges within its healthcare system. As society grapples with the social ramifications of unhealthy eating and languishing health outcomes, it is incumbent upon the Government to champion initiatives that prioritise citizens’ well-being. By embracing a model that supports healthful eating and reinforces community healthcare, Zimbabwe can pave the way for a sustainable future rich in potential for growth, resilience, and improved public health outcomes. Through these fiscal measures, Zimbabwe can address both the immediate health crisis and long-term economic stability, fostering a healthier, more vibrant society.
λ Marshall Ndlela is a Zimbabwean based in Australia. He is a holder of a Master’s Degree in Finance and Accounting from the University of Chichester, England. He can be contacted via mefrischool@gmail.com
