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Senator lobbies for sin tax

Sin tax is an excise tax specifically levied on certain goods deemed harmful to society, for example alcohol and tobacco, candies, drugs, soft drinks, fast foods, coffee, and gamblin

Zanu PF senator Angeline Tongogara has revived calls for the introduction of sin tax on alcohol and cigarettes to fund the country’s ailing health delivery sector.

A sin tax is an excise tax specifically levied on certain goods deemed harmful to society, for example alcohol and tobacco, candies, drugs, soft drinks, fast foods, coffee, and gambling.

The country’s health sector suffers a myriad of challenges related to underfunding, mismanagement and corruption.

Tongogara, the wife of the late Zanla commander Josiah Tongogara, said introducing sin taxes may be the answer to unlock funding to the ailing health sector.

"Pursue more prudent utilisation of funds by focusing more on preventive and public health interventions rather than curative cares as prevention is better than cure,” Tongogara said on Tuesday while moving a motion on the creation of a sustainable health care system in Zimbabwe.

“Introduce sin taxes on alcohol and cigarettes as a measure for domestic resource mobilisation and the funds raised would be channelled towards the health sector. On this end, measures should be put in place to monitor that these funds are directed for the intended purpose.

"To that end, it is critical that we build upon these lessons and ensure that we continuously call for adequate and sustainable financing of our health sector."

This is not the first that a proposal for sin taxes as part of plans to increase financial resources for health is being made.

The taxes, if introduced, will affect products like alcohol and cigarettes.

In his 2022 national budget, Finance minister Mthuli Ncube increased excise duty on cigarettes and energy drinks with the funds going towards the treatment of non-communicable diseases (NCDs) such as cancer.

"Government should prioritise disbursement of non-wage funds to the relevant ministries, departments and agencies earlier in the year to facilitate the efficient implementation of medium to long-term health interventions,” Tongogara said.

"Strengthen the health financing co-ordinating mechanism to allow for more efficient and effective prioritisation and utilisation of donor funds in a manner that is aligned with the overall goals and objectives of the government

“There is an urgent need for a robust and sustainable National Health Insurance system that will substantially reduce out-of-pocket spending on health as well as prevent catastrophic health spending.

"To that end, it is critical that we build upon these lessons and ensure that we continuously call for adequate and sustainable financing of our health sector."

l Follow Harriet on Twitter @harrietchikand1

 

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