Mthuli Ncube Introduces Plastic Bag Tax in 2025 National Budget
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.
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.
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.
