Parly adds voice to "sin tax" call

More taxes could be used to fund the purchase of medical equipment

Zim Now Writer

The Parliamentary Portfolio Committee on Health and Child Care is proposing more taxes on alcohol and fast foods products in order to boost funding for health.

This is contained in the committee’s report on the 2023 national Budget tabled in Parliament this week. Vice President and Health Minister Constantino Chiwenga has previously advocated for a “sin tax” to fund the health delivery system with other stakeholders saying the same thing post the 2023 Budget announcement.

https://zimbabwenow.co.zw/articles/1536/sin-tax-viable-option-to-significantly-improve-health-service-delivery-for-zims-medically-uninsured-95-percent

The Ministry of Health and Child Care submitted a bid of $820 billion to Treasury for its programmes, but received an allocation of $473,76 billion, leaving a funding deficit of $346,28 billion, even though health is one of the major items in the Budget.

The committee proposed said the new taxes will be aimed at ring-fencing of a health fund levy.

“This fund will target medical equipment, laboratories, and medicines. The Budget allocation for this levy needs to be in United States dollars to cater for the import of most medical equipment, drugs and accessories,” reads the report.

A road fund levy was also proposed to cater for casualty evacuations and treatment from road accidents and treatment of accident victims.

“If introduced, this will go towards blood procurement, ambulances and emergency services,” said the committee.

The committee also encouraged the promotion of public-private partnerships to invest in quinary (specialist) health services, adding that Zimbabwe’s diaspora community could ride on this facility since government would provide land as an incentive towards investment in this area.

“PPPs can also be used for the creation of private wings in big referral hospitals and funds collected from these are then used to subsidise poor patients,” the committee said.

“Therefore, big companies, including big mining companies among others, can be incentivised to participate in this initiative where they will bring latest medical equipment and other requisite infrastructure.

“A PPP model that is already running at United Bulawayo Hospitals for orthopaedic services to children can be replicated,” said the committee.

The committee also lobbied for more “sin taxes” on tobacco and alcohol to fund treatment of non-communicable diseases caused by the consumption of the products.

A tax on manufactured and retail foods that cause obesity, would fund investigations and treatment of diabetes; arthritis and dental disease that arose from the consumption of such foods, the committee said.

Funds for the establishment rehabilitation and detoxing centres can be generated from tax on beer and alcohol substance manufacturers since the consumption of these has mental health implications.