Sugar Tax Ripples: Mazoe orange crush prices surge in Zimbabwe

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Schweppes Zimbabwe recently faced a 29% price hike for Mazoe Orange Crush due to a new sugar tax. This legislation aims to promote healthier lifestyles and address non-communicable diseases, but raises questions about affordability and economic impact.

Schweppes Zimbabwe Limited is a manufacturer and distributor of non-carbonated still beverages under license from The Coca-Cola Company. Its beverages portfolio includes Mazoe crushes and syrups, Minute Maid juices, Bonaqua Still Water, and Schweppes Still Water.

While not classified as essential goods, many products from Schweppes Zimbabwe have become integral to shopping lists over generations, forming a part of Zimbabwean households’ daily consumption.

Outlined in the 2024 National Budget by Finance Minister Professor Mthuli Ncube, this levy is aimed at curbing the consumption of sugary beverages, which have been linked to a rise in non-communicable diseases.

Considering that Zimbabwe’s beverage industry consumes around 7,000 tonnes of sugar monthly, the proposed levy could translate to a combined monthly tax payment of approximately US$140 million and an annual industry tax revenue of US$1.6 billion directed into state funds.

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