Finance and Economic Development Minister Mthuli Ncube announced on Thursday a set of new taxes designed to boost government revenue and address growing financial demands, placing additional strain on an already burdened taxpayer base. These taxes, which will take effect on January 1, 2025, will target sectors such as fast food, betting, and plastic bags, among others.
The key tax measures in the 2025 National Budget are as follows:
- Fast Food Tax: A 0.5% tax on the sales of fast food items like pizza, burgers, chips, tacos, and hot dogs.
- Betting Tax: A 10% withholding tax on the gross winnings from sports betting.
- Plastic Bag Tax: A 20% tax on the sale of plastic bags.
- Rental Income Tax: A 25% tax on the rental income from properties converted from residential to business use.
- Capital Gains Tax on Marketable Securities: A 1% tax on the sale of marketable securities.
- Excise Duty on Alcohol: An increase in excise duty on alcoholic beverages, rising from USD 0.25 to USD 0.30 per liter.
- Royalties on Quarry Stones: A royalty rate of 0.5% on the sale value of quarry stones.
- Corporate Income Tax on Building Societies: Taxing receipts from non-mortgage activities carried out by building societies.
- Mandatory Tax Registration for Emerging Sectors: Small businesses, including car dealers and hardware operators, must register for taxes, with quarterly corporate tax payments levied if they fail to comply.
In response, former MP for Mt. Pleasant, Fadzayi Mahere, sharply criticized Ncube’s tax increases, accusing him of placing an undue burden on citizens while leading a lavish lifestyle. She voiced her concerns on social media, highlighting the government’s lack of accountability in addressing the country’s economic challenges and growing debt, while continuing to impose additional taxes on ordinary people.
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Mahere also referred to the government’s inability to pay teachers and its reliance on food aid amid recurring droughts. She criticized Ncube’s tax proposals, suggesting that they were ill-conceived and exacerbated the already difficult economic conditions, calling the budget anti-people and anti-progress.
