Siphakeme .Mnindwa
Sikhulekelani Moyo, mskhulekelani16@gmail.com
MAZOE, a beloved drink with a special place in the hearts of many Zimbabweans, including those in the diaspora, is set to become more accessible again after a year of limited supply and increased costs. This welcome change follows Finance Minister Mthuli Ncube’s proposal to reduce the Special Surtax for cordials.
The minister made this announcement on Thursday in Parliament while tabling the 2025 National Budget, which runs under the theme “Building Resilience for Sustained Economic Transformation”.
This year, in February, the Government introduced a special surtax on beverages, which saw Mazoe prices go up beyond many people’s reach. This did not sit well with the citizens, who tried to lobby for the reduction or removal of the tax. The listening Government reduced the special tax from US$0,02 per gram to US$0,001 per gram for all beverages. This came as a relief to many, but still, the prices did not drop to the expectations of the citizens.
It is against this background that the reduction of the special tax for cordials saw citizens expressing their happiness, as this brought hope that families would start affording their favourite drink.
Professor Ncube said the reduction, which will be effective from 1 January 2025, will provide a level playing field for the beverages sector.
The Special Surtax was proposed last year during the presentation of the 2024 National Budget, and the initial tax was set at US$0,02 per gram, with the funds intended to be ring-fenced for therapy and the procurement of cancer equipment for enhanced diagnosis. This proposal caused an uproar in the market, creating artificial shortages of beverages, which saw prices for products like Mazoe rising from as little as US$3 to around US$7 for a 2-litre bottle.
The market also responded by selling lower-sugar drinks smuggled from neighbouring countries. Examples included obscene retail price increases of soft drinks, alcoholic beverages, and a range of value-added dilute juices. Some businesses even wrongly applied the tax to raw sugar.
However, the Government stated that the price hikes were due to deliberate misinterpretation of the policies by businesses with tendencies of profiteering at the expense of customers.
The minister explained that representations from manufacturers indicate that cordials, due to their concentrated nature, have a higher sugar content and, hence, attract a higher effective tax compared to ready-to-drink beverages. Common practice, however, requires that the tax be based on the sugar content of the diluted product.
“In order to create a level playing field between ready-to-drink beverages and cordials, I propose to review the Special Surtax on beverages’ sugar content in cordials from US$0,001/g to US$0,0005/g, with effect from 1 January 2025,” said Professor Ncube.
Since its establishment in February to September 2024, the Government collected approximately US$18 million from the special surtax. According to experts, the reduction of the sugar tax will bring relief to customers as it will result in a drop in prices.
During the minister’s presentation for the 2025 National Budget, some of those who were following the proceedings online were seen sending messages appealing to the Minister to consider reducing or removing the surtax on Mazoe.
“PaMazoe apa minister tioneiwo tamasuwa/ Please minister reconsider the Mazoe issue we are now missing it,” reads one of the online comments on Facebook.
As many would say, Mazoe is a brand that represents the country without speaking a word. It is the only drink with a name that represents all other cordial drinks, with the 90s kids only knowing Mazoe as a drink. This has seen them calling any dilutable (cordials) drink Mazoe.
Speaking to some individuals in the streets of Bulawayo, they expressed their hope, saying that the reduction of the special tax will see them going back to their original life where Mazoe was a part of every meal.
“Now that the tax is reduced, we hope to see the price also being reduced. This will allow us to go back to our original brand. We love it so much, but due to it being expensive, we have already found some alternatives even though they don’t quench our thirst. We have been buying the brand here and there, but we want Mazoe every day. We grew up having Mazoe, and we would want that to continue,” said a Bulawayo resident who only identified himself as Mdlongwa.
Another person who commented in passing said: “Thina sikwazi iMazoe kuphela (We only know Mazoe). So the prices should get back to what we used to know such that we afford our favourite drink.”
@SikhulekelaniM1
