The Government’s newly introduced 0.5 percent levy on fast-food items has generated almost US$1 million in revenue during the first half of 2025, a senior official has confirmed.
The tax, commonly known as a “sin tax,” aims to encourage healthier eating habits and combat rising levels of obesity and non-communicable diseases. It applies to popular fast-food items such as pizza, burgers, French fries, and doughnuts.
During a Question and Answer session in the National Assembly on Wednesday, Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa revealed that total collections from the levy amounted to US$954 912. He explained that while the tax was introduced in January 2025, formal accounting for the revenue only began in March due to the pending Tax and Revenue Management System and confederation process by ZIMRA.
Economists have welcomed the measure, noting that it is likely to boost Treasury revenue and support funding for development projects. The levy is imposed on a per-unit basis, targeting both revenue generation and the discouragement of unhealthy food consumption.
The initiative follows the success of the sugar content tax implemented last year, which has already generated over US$30 million in revenue in the first half of 2025. While the fast-food levy has sparked debate, experts view it as a strategic move to enhance domestic resource mobilisation and address critical national priorities.
Source – online
