Ndlovu calls for review of sugar tax as beverage industry revenues rise

Nokusa Masuku

Industry and Commerce Minister Mangaliso Ndlovu has called for a review of Zimbabwe’s sugar tax, saying the levy imposed on manufactured beverages appears disproportionate to the cost of sugar used in production.

Addressing the 2027 National Pre-Budget Seminar in Bulawayo yesterday, Minister Ndlovu said the beverages sector had recorded significant growth in production volumes and revenue, but argued that the tax burden on manufacturers needed further examination.

He said beverage manufacturers had raised concerns over the amount they pay for sugar compared with the tax collected by the Treasury on their products.

“What may not have come out clearly is that beverage manufacturers are telling us they spend $800 to buy a ton of sugar used in manufacturing,” he said.

He highlighted that the figures appeared disproportionate, although more detailed data was needed to establish the full impact of the tax and support a fair discussion on the matter.

“When that is taxed, $1,000 goes to Treasury. This appears disproportionate, but we will need the full data to have a fair discussion on the matter,” he added.

Minister Ndlovu noted that the government needed to engage stakeholders and examine the figures before determining whether changes to the levy were necessary.