27 FEB 2024, [Harare] – The Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, issued a statement yesterday shedding light on the tax policies adopted by the government to shape consumer behaviour, particularly in relation to consumption-based taxes.
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In a bid to promote transparency and accountability, the government aims to enlighten the general public on the broad tax policy considerations that have traditionally guided the development of the taxation system, with a specific focus on consumption taxes.
These taxes, charged on the consumption of goods and services, are pivotal in influencing consumer behaviour and addressing societal concerns.
Minister Ncube emphasised the consultative nature of the development and refinement of tax policy measures, involving various stakeholders such as business entities, consumer organisations, civil society, academia, government agencies, and the public.
Such consultations play a crucial role in shaping public policy and fostering national development.
Amid concerns raised by stakeholders regarding recent tax measures, Minister Ncube reaffirmed the government’s commitment to bold and transformative measures outlined in the National Development Strategy 1 (NDS1), designed to propel the nation towards achieving its Vision 2030.
One such measure is the introduction of the Beverages Sugar Content Tax, aimed at promoting healthier lifestyles and mobilising revenue for health-related causes. Contrary to misconceptions, the tax is not imposed on sugar itself but rather on the added sugar content in specified beverages.
Minister Ncube clarified that the tax revision to US$0.001 per gram demonstrates the government’s responsiveness to constructive input from stakeholders.
Furthermore, Minister Ncube underscored the importance of both producers and consumers in effecting positive change. While some producers may need time to adjust their production processes, consumers are urged to make conscious choices regarding sugar consumption in light of its adverse health effects.
In a testament to its commitment, the government has pledged to allocate revenue generated from the Beverages Sugar Content Tax towards cancer therapy and the procurement of cancer diagnosis equipment. The Treasury will oversee the commissioning of these machines, ensuring transparency in the utilisation of funds.
However, Minister Ncube expressed concern over unjustifiable price increases by some beverage manufacturers, wholesalers, and retailers, attributing them to the impact of the Beverages Sugar Content Tax. Government will closely monitor pricing practices to prevent exploitation and ensure fair treatment of consumers.
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More so, Minister Ncube reiterated the government’s commitment to evidence-based policymaking and urged stakeholders to actively participate in consultations to ensure the successful implementation of measures aligned with the objectives of NDS1.
In striving for a healthier and more prosperous future, the government remains steadfast in its pursuit of equitable and sustainable economic development, guided by principles of transparency, accountability, and stakeholder engagement.
