The newly introduced 0,5 percent tax on fast foods has generated nearly US$1 million in revenue in the first half of the year, Finance, Economic Development and Investment Promotion Deputy Minister Kudakwashe Mnangagwa has said.
The tax is meant to promote healthy eating and combating the rise of obesity and non-communicable diseases. It is charged on fast foods such as pizza, burgers, French fries and doughnuts.
Deputy Minister Mnangagwa confirmed the figure collected so far during a question and answer session in the National Assembly on Wednesday.
“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,” he said.
Economists believe the introduction of the fast-food tax will widen the Treasury’s revenue inflows and facilitate funding for development projects.
The tax, implemented at the beginning of the year, is levied on a per-unit basis for various fast-foods and is aimed to generate revenue for the Government while discouraging the consumption of unhealthy foods.
The tax has generated intense debate but economists see it as an opportunity to bolster domestic resource mobilisation and address critical national needs.
This follows the successful introduction of the sugar tax for beverages last year, which saw Treasury collect more than US$30 million. Revenues from the sugar tax are being used to support the production of essential medicines locally and buy cancer machines for public hospitals.
