Zimbabwe’s Finance Minister, Mthuli Ncube, has unveiled a new tax on plastic carrier bags as part of the 2025 National Budget, a decision that could lead to higher prices for consumers across the nation.

In his address to the National Assembly, Ncube explained that this tax is aimed at addressing pressing environmental issues while encouraging the adoption of biodegradable packaging. He stated, “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.” This initiative reflects a broader global movement towards reducing plastic waste and fostering sustainable practices.

Alongside the plastic bag tax, Ncube also announced measures to bolster recycling efforts within Zimbabwe. He proposed tax incentives for both individuals and businesses engaged in recycling activities. “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,” he elaborated. This exemption is designed to motivate more people to participate in recycling initiatives and help reduce plastic pollution.