Price Hikes Looming?: Mthuli Ncube Introduces Plastic Bag Tax in 2025 National Budget

Mthuli Ncube Introduces Plastic Bag Tax in 2025 National Budget

Zimbabwe’s Finance Minister, Mthuli Ncube, has announced a new Plastic Carrier Bag Tax as part of the 2025 National Budget, a move that could lead to price increases for consumers.

Also read: City of Harare Warns That It Will Close Down Buildings Without Bins Outside

Why Mthuli Ncube Has Introduced A Plastic Bag Tax

Presenting the budget in the National Assembly on Thursday, Ncube outlined the rationale behind the tax, citing environmental concerns and the push for biodegradable alternatives.

“In order to promote the use of bio-degradable packaging, I propose to introduce a 20% Plastic Carrier Bag Tax on the sale value, with effect from 1 January 2025,” Ncube said.

Also read: Loadshedding Plunges Parliament Into Darkness as Minister Mthuli Ncube Wraps Up 2025 Budget Speech

Support for Recycling Initiatives

In a bid to support recycling efforts, the Finance Minister also proposed tax incentives for individuals and businesses involved in plastics recycling.

“Mr Speaker Sir, current legislation obliges registered taxpayers to withhold 30% of any aggregate value above US$1 000 on the supply of goods and services by unregistered taxpayers, with a view to compel operators to register for tax purposes. In order to support persons promoting the recycling of plastics, I propose to exempt from withholding tax, any supply of recyclable plastics, provided the aggregate amount supplied does not exceed US$5 000 in any year of assessment.” Ncube explained.

Also read: Zimbabwe’s New Betting Tax: Mthuli Ncube Introduces 10% Levy On Winnings

Other Controversial Taxes in the 2025 Budget

The Plastic Carrier Bag Tax is just one of several new levies introduced in the 2025 budget, including the controversial Fast Food Tax and a Withholding Tax on Betting, which have already sparked heated discussions across Zimbabwe.

While the government frames the initiatives as steps toward environmental and fiscal responsibility, many citizens fear the added financial burden, especially as the cost of living continues to rise.

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