MPs Grill Mnangagwa On How Millions From Sugar Tax Are Spent

Members of Parliament are demanding that the Ministry of Finance and Economic Development explain how millions of dollars raised through the sugar-sweetened beverages tax are being spent.

The sugar tax, introduced on 1 January 2024, was intended to curb excessive sugar consumption and raise funds for treating lifestyle-related illnesses such as cancer.

The levy was originally set at US$0.02 per gram but was reduced to US$0.001 per gram in February 2024 following industry objections. By the end of last year, authorities reported collecting over US$30 million from the tax.

During a recent question-and-answer session in the National Assembly, Bulawayo Central MP Surrender Kapoikilu (CCC) asked the Finance Ministry to clarify how the funds were being used. Said Kapoikilu:

“What are the government’s policies on the use of revenue from the sugar tax? What is it supposed to be used for?”

Responding, Deputy Finance Minister Kudakwashe Mnangagwa, son of President Emmerson Mnangagwa, said the policy had remained unchanged since the levy was introduced in the 2024 national budget. Said Mnangagwa:

“The idea of these sin taxes was to ring-fence them for lifestyle diseases such as cancer, among others.

“We are guided by the Minister of Health on the equipment that they want to purchase.

“Some of these proceeds have already gone towards such. So the policy still stands.”

Kapoikilu said that conditions on the ground showed no real improvements in cancer care at public hospitals.

He pointed to Mpilo Central Hospital in Bulawayo, where he said the radiotherapy department had not treated a single patient since 2022.

Chipinge MP Clifford Hlatshwayo (CCC) also called for greater transparency, insisting that taxpayers have a right to know exactly how the revenue is being spent.

More: CITE