Sugar tax generates US$8m for cancer care

Emmanuel Kafe

THE Government has mobilised over US$8 million from the recently introduced “sugar tax” during the first half of the year, with the funds now set to be deployed towards the procurement of vital cancer diagnosis, care and treatment equipment, and medication for public hospitals countrywide.

Treasury introduced the sugar tax in the 2024 National Budget, in response to growing concerns about the negative health impacts of consuming sugary beverages.

High sugar intake has been linked to numerous health issues, including obesity, diabetes and certain cancers.

The revenue generated by the sugar tax has been specifically ring-fenced for cancer treatment initiatives in the public health system.

The funds are now set to be used to purchase equipment for diagnosis, as well as essential medication and supplies needed to provide effective cancer care.

The sugar tax is levied at a rate of US$0,001 per gramme of sugar added to beverages.

The tax was implemented in January 2024 and has resulted in a marginal increase in the price of sugary drinks.

By bolstering the resources available for cancer diagnosis and treatment, the Government aims to ensure better access to essential and affordable healthcare services for Zimbabweans battling the disease.

Health and Child Care Minister Dr Douglas Mombeshora said the funds will bolster Zimbabwe’s cancer treatment programme.

“There is an issue of sugar tax, which I should mention now . . . I had also challenged the Minister of Finance (Economic Development and Investment Promotion, Professor Mthuli Ncube) regarding how much the sugar tax has been collected from the beginning of the year since we have not yet utilised a cent and yet sugar is utilised every day,” said Dr Mombeshora at the Health Development Partners Coordination Forum meeting last week.

“I am glad to say that the Ministry of Finance said there is US$8 million now for us to utilise.

“This is going to target procurement

of cancer treatment machines and cancer treatment supplies and drugs.

In a separate interview with The Sunday Mail, Dr Mombeshora added: “The sugar tax will be channelled towards procurement of cancer treatment machines, advanced drugs and equipment for all major referral hospitals across the country.

“The money will deal specifically with the management of cancer from treatment to drugs.”

The sugar tax was initially pegged at US$0,002 per gramme, before it was reviewed downwards to the current US$0,001 per gramme after representations by industry.

Last year, the Government procured advanced radiotherapy machines that are used to treat cancer, which were installed at two major public hospitals.

Treasury shelled out US$2,4 million to acquire the cutting-edge radiotherapy machines for Parirenyatwa Group of Hospitals and Mpilo Central Hospital — the two biggest public hospitals that offer cancer treatment.

Plans are also underway to acquire Gamma Knife machines for the two institutions. These are stereotactic radiosurgery devices that use gamma radiation beams in intricate procedures to treat tumours in brains, spinal cords and sensitive body parts.

Provision of cancer treatment services in public hospitals will come as a huge relief to thousands of Zimbabweans living with various cancers, who mostly depend on costly services from private hospitals.

The cost of a round of cancer treatment in Zimbabwe varies, depending on the type of treatment, the stage of the cancer and the patient’s circumstances

Chemotherapy drugs can range from US$100 to US$1 000 per dose, while radiotherapy can cost anywhere from US$5 000 to US$10 000 per course of treatment.

A patient may need multiple courses of radiotherapy.

Surgery can cost between US$1 000 and US$10 000, depending on the type of procedure and the complexity of the case.

Provision of cancer treatment services in public hospitals is expected to bring the cost of treatment down.

Meanwhile, Treasury is also generating around US$2 million monthly from excise duty on airtime sales, which is also being used to bolster the public health system.

Health and Child Care Permanent Secretary Dr Aspect Maunganidze said the money is now being pooled in the Consolidated Revenue Fund

“What you are calling the airtime tax used to be housed under the Ministry of Health and we would draw from it according to our needs for equipment and other essential supplies.

“Since three or so years ago, all these funds are now under the Consolidated Revenue Fund.

“The average amount of money which goes there is plus or minus US$2 million per month from the taxes we get,” he said.

“So, what we are now supposed to do as a ministry, especially when we have challenges, we specifically request to draw from that fund.

“And we have been able to do it several times.”

President Mnangagwa’s administration has been investing heavily in the health sector to establish affordable and accessible world-class services for Zimbabweans.