Mthuli Ncube DOUBLES Fast Food Tax Before It Even Takes Effect – What Happened?

Zimbabwe Fast Food Tax Hike: Mthuli Ncube Blames Parliament for Doubling Levy

Zimbabwe’s Minister of Finance, Mthuli Ncube, has doubled the proposed Fast Food Tax from 0.5% to 1% before its official implementation on 1 January 2025. The unexpected change has sparked debate in Parliament and raised questions over the origin of the increment.

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MP Exposes Discrepancy

Corban Madzivanyika, MP for Mbizo, brought the increase in the fast food tax to light during a parliamentary session. He noted the inconsistency between the 2025 National Budget Statement and the gazetted Finance Bill.

“There is a surcharge of 1 percent in the Finance Bill that we received. The surcharge is 1 percent on fast food. But if you look at the 2025 National Budget Statement, the surcharge was 0.5 percent. So I wanted you to see the inconsistency because my assumption is the Finance Bill is taken from the National Budget Statement,” Madzivanyika said.

His remarks sparked a response from the Finance Minister, who explained the origin of the revised tax rate.

Minister Defends the Decision to Double Fast Food Tax

Minister Ncube attributed the increase to recommendations from Parliament’s Budget and Finance Committee.

“On increasing the levy from 0.5 percent to 1 percent, the one percent was proposed in this August House. It came from the Committee, in fact, that debated on this the very first time, which is the Budget and Finance Committee. So I accepted it, and then I proposed it, and that’s what we have in the budget. It came from this House,” Ncube said.

However, the Committee’s report appears to contradict this claim.

What the Committee Really Said About the Fast Food Tax

The Parliamentary Portfolio Committee on Budget and Finance noted that a tax of 0.5% would have a “minimal disturbance on consumption.” Their recommendations made no mention of doubling the tax to 1%.

In its official report, the Committee stated,

“The Fast-Food tax applied at a rate of 0.5% has minimal effect on the price, hence minimal disturbance on consumption.”

The Fast Food Tax, aimed at raising revenue and promoting healthy llifestyles, has already drawn attention even before its implementation.