ZIMBABWE
Sin tax for cigarettes and alcohol proposed

Vice President and Health Minister, Constantino Chiwenga wants to enforce a tax on cigarettes and alcohol to financially help the health sector, reports News Day.

Chiwenga presented a position paper on the 2022 national budget, which includes a sin tax that would see the price of cigarettes and alcohol go up. The proposal aims to help and improve Zimbabwe’s struggling health system. According to News Day, Chiwenga said alcohol and cigarette manufacturers would be directly taxed and also proposed diverting some Zinara funds to the Health Ministry in order to avoid overtaxing citizens.
“It is also proposed that a certain number of cigarettes be reserved for financing health, for example, for every five packets sold one goes to the national health services. […] So let us have a cent from alcohol, cigarettes and Zinara fees, to fund national health services,” Chiwenga said.
With this, Chiwenga was responding to the public who had raised several concerns during countrywide public consultations on the 2022 budget and told the Parliamentary Portfolio Committee on Health that Finance minister Mthuli Ncube should increase allocations of the health levy from 5 per cent to 10 per cent of the 2022 budget, according to News Day.
“To reinforce the restructuring of the health sector in the 2022 budget, government will increase funding to the sector through focus on promoting local production of some medical supplies while increasing support towards research and development. Such efforts will be undertaken within the context of increasing government funding to the sector towards the Abuja Declaration of 15 per cent of the national budget,” Ncube said.

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