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Mthuli Ncube Defends Unpopular Sugar Tax, Says Beverages Price Increases Are Unjustified | Full Statement

1 year agoTue, 27 Feb 2024 15:57:27 GMT
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Mthuli Ncube Defends Unpopular Sugar Tax, Says Beverages Price Increases Are Unjustified | Full Statement

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

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 developing 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 policymakers.

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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 includes 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 to 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 encouraging responsible consumption of sugar contained therein. It is scientifically proven that excessive consumption of added sugar in beverages is linked to an increased risk of non-communicable diseases.

10. The revision of the tax to US$0.001 per gram is a 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 a 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.

13. 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.

15. 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, “Nyika inovakwa nevene Vayo/llizwe lakhiwa ngabanikazi balo”.

Hon. Prof. M. Ncube
MINISTER OF FINANCE, ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTION
27 February 2024

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23 Comments

*** · 1 year ago
Saka anaRudo vanonaka votowedzera mari dzavo dzesugar yavo iri pakati pemakumbo avo nekuti Mthuli achava texa kkkkkk
T · 1 year ago
By how much did the prices go up. If the price of 2l of Mazoe went up by US$1 (100cents) while the tax is USD 0,001/gram, does that tell us how many grams there are in 2l of Mazoe
baba jukwa · 1 year ago
this means production costs of a 2l of mazoe has gone up by 2cents then the wholesale will add its own then the retailer will add its own that's why it will end up at a higher level nekuti handingati ndatenga nemutengo wakakura ndonoita less the stocking price ndinofa pa makasi saka vese vano wedzera ma cents iwayo but it ends up hating the consumer
Anonymous · 1 year ago
"Development and refinement of tax policy measures has always been a result of a consultative process". LOL. That's funny.
Nkomo · 1 year ago
To some extent I don't problem Mthuli's tax system. They claim to be under suctions so taxation it's the main the government can raise revenue but the problem that our government is not efficient, instead of funding industries to create employment they put money in their pockets
Ncube = baboon · 1 year ago
What's wrong with the Ncube clan? We have Trevor Ncube, Welshman (who isn't Welsh) Ncube and this Mthuli- all sitting on the top branches of all nefarious activities
baba jukwa · 1 year ago
mtuli is incompetent, how come he says the tax is not something to worry about when it has pushed the prices of beverage to go up. and who is he to tell us on how we consume sugar, he acts like he cares while he does not even use this si. lly rtgs he introduced
Bhuru · 1 year ago
I feel like the whole country is paying for sins committed by us Cowdray Park residents, sorry Mthuli for not voting you but the truth is we can't sell our souls to the devil in broad day light. #pasinaMthuli
sky · 1 year ago
The consumer will face the effect coz swhepes mazoe orange for it to be popular is coz of it's ingredients So its customer who will cover the taxes indirectly or it will loose it's quality and no exports
super · 1 year ago
iwe mthuli sure sure hamuna mwoyo usadaro kunge . usina kusikwa mwari
Matthew · 1 year ago
With all the problems we have going on you are trying to tell me that the one thing the government cares about is how much sugar you eat.this is pure lies and delfection from the minister of thievery.
Minister Manyama · 1 year ago
Thanks for clarification Hon Min Manyama. This tax is designed to make producers to reduce beverage sugars such as sweeteners which cause cancer....imi vagadziri vema drinks makuda kutiita ma**** kutinyepera kuti tsvigiri ndoyaiswa tax.
@Mtuvi Ncube · 1 year ago
Jus like yo grandfather's who sold the country coz of sugar Yu are prepared to add yet another tax coz of sugar
Tafadzwa Garfield Kadondo · 1 year ago
a full finance minister and professor in economics talking about "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". zvimwe kusiirawo we Health. after all, when I a dog want to eat its puppies it finds such **** justifications Koo kujoni kunobva ma fizzi e Dolla hakuna here ma tax
Senzeni na' · 1 year ago
Welcome to Zimbabwe, home to the world’s highest inflation rate – a stunning 1 397%/yr. It’s time for Finance Minister Mthuli Ncube to resign
Saint · 1 year ago
you have failed suka lapho
MuZimba ari kutambura · 1 year ago
after the devil we fear you Mthuli Ncube
@@ · 1 year ago
just resign dude
Ian Smith · 1 year ago
He must just resign.Tax increases the cost of production and reduces demand.
Paul · 1 year ago
He definitely should RESIGN with immediate effect. Actually, it would be absolutely amazing if ZANU PF just RESIGN from running our country since independence.
. · 1 year ago
this guy kinda reminds me of Squiler in Animal Farm, justifying the unjustifiable, so the whole nation is being taxed till kingdom come just to buy some few cancer machine's, if that is the case then community Clinics should also be equiped with them coz everyone is contributing and by the way how much do they cost (cancer machine's) to warrant such taxation

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