Ring fence sugar tax funds through law – health watchdog tells government

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THE Community Working Group on Health (CWGH) has warned that Zimbabwe’s sugar tax risks failing cancer patients unless the government urgently puts in place legislation to protect the funds from diversion.

Zimbabwe introduced the sugar tax in 2024, officially the Special Surtax on Sugar Content on sugar-sweetened beverages.

The sugar tax is administered as an excise duty and collected by the Zimbabwe Revenue Authority (ZIMRA), with government previously indicating it was meant to help finance cancer treatment.

In a statement released to mark World Cancer Day, CWGH National Director Itai Rusike said although the money raised is currently paid into the Consolidated Revenue Fund, it can be used for general government expenditure.

“The funds raised from the sugar tax are deposited into the consolidated revenue fund. This raises the risk that the funds could be diverted and used for other government expenses and not for its intended healthcare purpose.

“To ensure the funds go to their designated health-related initiatives, it is critical that the government passes enabling legislation to ring-fence the funds,” Rusike said.

The health watchdog called for improved governance of the sugar tax, saying transparency, accountability and public oversight were essential to ensure the funds are used efficiently and for their intended purpose.

“Ensuring transparency and accountability for ring-fenced health taxes requires clear legal, institutional, and public oversight mechanisms. Proactive citizen engagement is also critical,” Rusike added.

It also stressed the need for proactive citizen engagement in monitoring how the money is spent.

CWGH said the call comes against the backdrop of a growing cancer burden in Zimbabwe, particularly cervical cancer.

Zimbabwe ranks among the top five globally for cervical cancer burden, with an estimated incidence of between 61 and 68 cases per 100,000 women annually.

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