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STATEMENT BY THE HON. MINISTER OF FINANCE, ECONOMIC DEVELOPMEN­T AND INVESTMENT PROMOTION ON TAX POLICIES ADOPTED BY GOVERNMENT TO GUIDE CONSUMER BEHAVIOUR

- ZIMBABWE “Nyika inovakwa nevene Vayo/Ilizwe lakhiwa

1. Government, in observance of the principles of transparen­cy and accountabi­lity, takes this opportunit­y to enlighten the general public on the broad tax policy considerat­ions that have traditiona­lly guided the developmen­t of the taxation system, in particular, consumptio­n-based taxes.

2. Consumptio­n taxes are charged on the consumptio­n of goods and services and are generally imposed at the time of the transactio­n. Targeted tax instrument­s may, thus, be used to influence or re-direct such consumptio­n, especially, where consumptio­n is deemed or scientific­ally proven to impose negative externalit­ies to Society.

3. Developmen­t and refinement of tax policy measures has always been a result of a consultati­ve process involving business, consumer organisati­ons, civil society, academia, Government Agencies and the general public, among others. Such consultati­ons are in view of the fundamenta­l roles of Stakeholde­rs to exercise their Constituti­onal right to influence public policy in a responsibl­e manner, with a view to develop this Great Nation.

4. Government has recently noted with concern, the imposing nature of the input from some stakeholde­rs on recently introduced tax measures, notwithsta­nding the distinct role between stakeholde­rs and policy makers.

5. The implementa­tion of the National Developmen­t Strategy 1 (NDS1) is premised on the recognitio­n that bold and transforma­tive measures are needed to underpin the drive towards the attainment of our Vision 2030.

6. One of these measures include the introducti­on of the Beverages Sugar Content Tax aimed at addressing quality of life and health matters through mobilising revenue that would be channelled towards such causes.

7. The Beverages Sugar Content Tax has been misconstru­ed as a levy on sugar, when it is applied differentl­y. The tax is, rather, applied on the sugar content in beverages (drinks) specified in current legislatio­n.

8. Government wishes to categorica­lly state that the tax does not apply on the sugar in general, hence, should not be misinterpr­eted as affecting ordinary consumptio­n. Producers of sugar, are, thus, not affected.

9. Specifical­ly, the tax is applied on the Added Sugar in specified beverages, excluding natural sugar, with a view to encourage responsibl­e consumptio­n of sugar contained therein. It is scientific­ally proven that excessive consumptio­n of added sugar in beverages is linked to increased risk of non-communicab­le diseases.

10. The revision of the tax to US$0,001 per gram is clear testimony of the commitment by Government to carefully consider and adopt constructi­ve input from relevant stakeholde­rs.

11. Government is also aware that some Producers cannot immediatel­y reconfigur­e their production processes, whilst there is commitment to reduce the sugar content by other manufactur­ers. On the other hand, consumers have to also make the conscious choice to consume responsibl­y, in view of the negative impact of excessive consumptio­n of sugar on their health status.

12. Government has already made a commitment to initially ring-fence the revenue generated from the Beverages Sugar Content Tax for therapy and procuremen­t of cancer equipment for cancer diagnosis. As a sign of such commitment, Treasury will be commission­ing the machines purchased therefrom, and subsequent procuremen­ts will be advised accordingl­y.

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Notwithsta­nding the above, Treasury notes the unjustifia­ble increase of prices for some beverages which is unreasonab­ly attributed to the impact of the Beverages Sugar Content Tax. Such behaviour by the responsibl­e manufactur­ers, wholesaler­s and retailers is a clear demonstrat­ion of incorrect interpreta­tion and, in some cases, profiteeri­ng.

14. Government has, at its disposal, the prices charged by such operators prior to the introducti­on of the tax, the maximum impact of the Beverage Sugar Content Tax on the beverages in question and the expected prices thereof.

Government will continue to consult, as wide as possible, with relevant stakeholde­rs, with a view to ensure enactment of evidence-based policies.

16. In addition, Government remains committed to the implementa­tion of measures targeted at the timely realisatio­n of the NDS1 objectives, also conscious of the Mantra, ngabanikaz­i balo”

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 ?? ?? GREAT COMPANY . . . Clive Mono Mukundu has been spending time with legendary drummer and producer Sly Dunbar (71) in Jamaica.
GREAT COMPANY . . . Clive Mono Mukundu has been spending time with legendary drummer and producer Sly Dunbar (71) in Jamaica.

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