News / Local
Zimbabwe collects US$30,8m from sugar tax
23 hrs ago | Views
The Zimbabwean government has reported collecting US$30.8 million from the special surtax on sugar content in beverages since the gazetting of Statutory Instrument 16 of 2024, the Customs and Excise (Tariff) (Amendment) Notice, 2024 (No 5) on February 9, 2024.
In response to an inquiry by the Zimbabwe Association of Doctors for Human Rights (ZADHR), the Finance, Economic Development, and Investment Promotion Ministry confirmed the revenue collected from the sugar surtax up until November 2024. The ZADHR had requested details about the funds raised and whether they had been used for the intended purpose of financing cancer treatment and related medical expenses.
In a letter dated December 13, 2024, Finance Ministry permanent secretary George Guvamatanga addressed the inquiry, stating, "Thirty million eight hundred thousand United States dollars (US$30.8 million) of special surtax on sugar content in beverages has been collected as of November 2024."
The tax, introduced in February 2024, was intended to generate revenue for a cancer fund to support the procurement of cancer drugs and medical equipment. However, Guvamatanga's response did not provide specifics on the use of the collected funds for cancer treatments. He directed the ZADHR to the Ministry of Health and Child Care, as the procurement and distribution of drugs and medical equipment fall under its jurisdiction.
"The procurement of drugs and medical equipment is under the purview of the Health and Child Care Ministry. Hence, the Finance Ministry is not the competent authority to give you information on your second request," Guvamatanga explained in his letter.
The special surtax was initially set at US$0.02 per gram of sugar in beverage products but was later revised downward to US$0.002 after manufacturers raised concerns about the impact on their businesses. The tax rate is set to decrease further to US$0.0005 per gram on January 1, 2025.
In the 2024 national budget, Finance Minister Mthuli Ncube outlined the tax on sugary beverages as a key funding source for the creation of a cancer fund. The move came as part of broader efforts to address the growing burden of non-communicable diseases, including cancer, in Zimbabwe.
However, despite the substantial funds raised, concerns remain about transparency and accountability regarding the use of the money for its intended purpose. The ZADHR's request for further details on the procurement of cancer drugs and equipment has raised questions about the government's commitment to addressing the needs of cancer patients in the country.
The issue continues to attract attention, with calls for greater oversight and clarity on how funds generated from the sugar surtax will be allocated and spent.
In response to an inquiry by the Zimbabwe Association of Doctors for Human Rights (ZADHR), the Finance, Economic Development, and Investment Promotion Ministry confirmed the revenue collected from the sugar surtax up until November 2024. The ZADHR had requested details about the funds raised and whether they had been used for the intended purpose of financing cancer treatment and related medical expenses.
In a letter dated December 13, 2024, Finance Ministry permanent secretary George Guvamatanga addressed the inquiry, stating, "Thirty million eight hundred thousand United States dollars (US$30.8 million) of special surtax on sugar content in beverages has been collected as of November 2024."
The tax, introduced in February 2024, was intended to generate revenue for a cancer fund to support the procurement of cancer drugs and medical equipment. However, Guvamatanga's response did not provide specifics on the use of the collected funds for cancer treatments. He directed the ZADHR to the Ministry of Health and Child Care, as the procurement and distribution of drugs and medical equipment fall under its jurisdiction.
"The procurement of drugs and medical equipment is under the purview of the Health and Child Care Ministry. Hence, the Finance Ministry is not the competent authority to give you information on your second request," Guvamatanga explained in his letter.
The special surtax was initially set at US$0.02 per gram of sugar in beverage products but was later revised downward to US$0.002 after manufacturers raised concerns about the impact on their businesses. The tax rate is set to decrease further to US$0.0005 per gram on January 1, 2025.
In the 2024 national budget, Finance Minister Mthuli Ncube outlined the tax on sugary beverages as a key funding source for the creation of a cancer fund. The move came as part of broader efforts to address the growing burden of non-communicable diseases, including cancer, in Zimbabwe.
However, despite the substantial funds raised, concerns remain about transparency and accountability regarding the use of the money for its intended purpose. The ZADHR's request for further details on the procurement of cancer drugs and equipment has raised questions about the government's commitment to addressing the needs of cancer patients in the country.
The issue continues to attract attention, with calls for greater oversight and clarity on how funds generated from the sugar surtax will be allocated and spent.
Source - newsday
