The government collects good money from sin taxes, making a new budget for health programs less likely after US aid stopped. Three taxes currently help fund healthcare needs. A sugar tax that started in 2023 at two cents per gram on local drinks was cut to just a tenth of a cent per gram in the 2025 budget. Fast food items have faced a one percent tax since 2025, which aims to reduce unhealthy eating habits. Alcohol and cigarettes have paid taxes since 2010 under the National Alcohol Policy.
Finance Minister Mthuli Ncube told reporters that these taxes bring in enough cash to keep HIV/AIDS programs running despite losing support from groups like USAID. Officials continue watching the situation closely. Ncube explained that Parliament worked with the Treasury to find other revenue sources. The combined income from taxes on sugary drinks, alcohol, cigarettes, and fast food should cover health sector needs without extra budget requests. The government believes these existing revenue streams can maintain essential health services throughout the country.
Finance Minister Mthuli Ncube told reporters that these taxes bring in enough cash to keep HIV/AIDS programs running despite losing support from groups like USAID. Officials continue watching the situation closely. Ncube explained that Parliament worked with the Treasury to find other revenue sources. The combined income from taxes on sugary drinks, alcohol, cigarettes, and fast food should cover health sector needs without extra budget requests. The government believes these existing revenue streams can maintain essential health services throughout the country.
