Government Collects US$30.8M from Beverage Sugar Tax Since February

The government has revealed that it has collected US$30.8 million from the special surtax on sugary beverages since the introduction of Statutory Instrument 16 of 2024, the Customs and Excise (Tariff) (Amendment) Notice, 2024 (No. 5), on February 9, 2024.

In a response dated December 13, 2024, addressed to the Zimbabwe Association of Doctors for Human Rights (ZADHR) through their legal representatives Kantor & Immerman, the Permanent Secretary for Finance, Economic Development, and Investment Promotion, George Guvamatanga, provided details about the tax revenue.

The ZADHR had previously written to the government on November 25, 2024, seeking clarification on how much money had been collected and whether it was being used for its intended purpose.

Guvamatanga stated, “US$30.8 million has been collected as of November 2024 from the special surtax on sugar content in beverages.” The surtax was introduced with the aim of raising funds for cancer-related interventions.

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The ZADHR’s request was made under Section 7 of the Freedom of Information Act [Chapter 10:33], seeking transparency on the allocation of the funds. They specifically inquired about the amount collected, what cancer drugs and medical equipment had been procured, and which hospitals had received these resources.

However, Guvamatanga explained that while the revenue had been collected, the allocation and utilization of funds for drugs and equipment fell under the Ministry of Health and Child Care.

He stated, “The procurement of drugs and medical equipment is under the purview of the Health and Child Care Ministry. Therefore, the Ministry of Finance, Economic Development, and Investment Promotion cannot provide information on that matter.”

The surtax was introduced in the 2024 national budget by Finance Minister Mthuli Ncube, who proposed taxing beverages with high sugar content to generate revenue for a cancer fund.

This fund was intended to support the procurement of cancer drugs and equipment as part of efforts to combat the rising burden of non-communicable diseases in the country.

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