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Fast-Food Tax Nets Nearly US$1 Million in First Six Months

 

Zimbabwe’s recently introduced 0.5% levy on fast-food items has raised almost US$1 million in its first half-year of implementation, according to official figures.

Deputy Minister of Finance, Economic Development and Investment Promotion, Kudakwashe Mnangagwa, told Parliament on Wednesday that total collections amounted to US$954,912 between January and June 2025.

“I wish to advise that total collections from the fast-foods tax amounted to US$954,912. While collections commenced in January 2025, accounting for the tax was effective from March 2025 due to the pending Tax and Revenue Management System and confederation process by ZIMRA,” Mnangagwa said.

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The levy, which applies to products such as pizza, burgers, French fries and doughnuts, is part of government’s strategy to promote healthier diets and curb rising obesity and non-communicable diseases.

The measure follows the controversial sugar-content surtax on beverages, which netted over US$30 million in the first half of 2025, but has been criticised by industry players who warn it is hurting local manufacturers and fuelling cheaper imports.

Despite the government’s public health rationale, many Zimbabweans have expressed frustration, particularly young urban consumers and low-income earners, who see the tax as regressive. On social media, some dismissed it as “a tax on survival treats.”

For now, government appears committed to expanding health-related levies, pointing to the early returns of the fast-food tax as evidence of its potential impact on both fiscal revenue and public health outcomes.

 

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