The Government of Zimbabwe has officially rolled out the Fast Food Tax as part of the 2025 National Budget revenue measures. This move, aimed at increasing government revenue, took effect on January 1, 2025, following President Emmerson Mnangagwa’s signing of the Finance (2025) Bill into an Act of Parliament.
What is the Fast Food Tax?
Finance Minister Mthuli Ncube confirmed that a 1% tax will be applied to the sale value of specified fast foods, as outlined in Section 12F of the Value Added Tax Act. The tax applies to fast food sold in pre-packaged form or prepared on-site for consumption on or off the premises.
š Which Fast Foods Are Taxed?
Under the Finance (2025) Act, the fast food tax covers:
š Pizza
š Burgers
š Hot Dogs
š Shawarma
š Tacos
š French Fries
š Chicken
š Doughnuts
…and other foods of a similar nature (specific descriptions to follow through further regulations).
š Impact on Prices
Fast food businesses across Zimbabwe have already increased prices to account for the new tax.
š Why It Matters
The Fast Food Tax is part of broader efforts to enhance domestic revenue streams and reduce fiscal deficits. It aligns with the government’s strategy to tax high-consumption sectors, potentially contributing to national economic growth.
