US$18 million sugar tax funds channelled to cancer fight
Nqobile Tshili, [email protected]
GOVERNMENT has collected approximately US$18 million from the sugar tax since the start of the year and the funds will be channelled towards procurement of cancer treatment equipment and accessories in line with the Second Republic’s commitment to improving health care services in the country.
The new tax was announced in the 2024 National Budget late last year and came into effect at the beginning of the year as part of the measures to reduce consumption of high sugar beverages.
When he proposed the new tax, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, clearly stated that the sugar tax funds were going to be ring-fenced towards therapy and procurement of cancer equipment for enhanced diagnosis.
Responding to Luveve-Emakhandeni National Assembly legislator, Mr Discent Collins Bajila during question and answer session in Parliament, Prof Ncube said the Treasury was collaborating with the Health and Child Care Ministry to procure cancer equipment from the sugar tax proceeds.
“Special tax of beverages sugar content tax for the first quarter amounted to ZiG7,9 million, cumulative collections to date amounted to ZiG248, 9 million, which is equivalent to about US$18 million,” he said.
“We are working speedily with the Ministry of Health and Child Care through the procurement processes so that we can acquire these machines and drugs as soon as possible,” said Minister Ncube.
He said for transparency purposes legislators will be invited to witness the commissioning of soon to be installed highly beneficial equipment, which is at the stage of procurement.
Mr Bajila said the procurement of the cancer equipment is an urgent matter as patients are struggling to access the critical service. “You are aware that day in and day out, even as we speak of other diseases, the issue of cancer always pitches up,” he said.
Mr Bajila said the issue of sugar tax collections and their deployment to make sure that cancer equipment is available in the country is a matter of urgency.
“I would like to find out from the Honourable Minister if they have any timelines they are using now that they have got a pocket of US$18 million? Are there any timelines that they are working on?”
Zimbabwe is not the only country with a sugar tax as South Africa introduced it in 2018 as Health Promotion levy.
Introducing the tax last year, Prof Ncube said sugary beverages were increasing the risk of non-communicable diseases.
“The consumption of high sugar content beverages is linked to increased risk of non-communicable diseases. It is, thus, necessary to discourage the consumption of high-sugar content beverages hence I propose to introduce a levy of US$0,02 per gram of sugar contained in beverages, excluding water, with effect from 1 January 2024. Funds derived from this levy will be ring-fenced for therapy and procurement of cancer equipment for diagnosis,” said Prof Ncube.
The Second Republic continues to invest in infrastructure development in the health sector to ensure citizens have better medical care. The Government is also leveraging on partnerships with developed countries to improve the country’s healthcare systems..
In Bulawayo, Provincial Affairs and Devolution Minister Judith Ncube recently led a delegation to Belarus, which has started exploring options to partner in the delivery of improved health care.
Following her visit to the Eastern European country, a delegation from Belarus visited the country two weeks ago to assess areas of cooperation and it visited the city’s major hospitals and clinics. — @nqotshili
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