Fast food prices remain stable

Nokuthaba Brita Ncube, [email protected]

FAST food prices have remained remarkably stable despite the introduction of a new fast food tax, aimed at addressing rising concerns related to non-communicable diseases (NCDs).

The tax, introduced as part of the 2025 National Budget by Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, targets popular fast food items like pizza, burgers, shawarma, French fries, chicken, doughnuts, hot dogs and tacos.

A 0,5 percent surcharge is now being levied on the sale value of these items.

In his budget statement, Prof Ncube noted that fast food consumption has been identified as a key contributor to the increasing prevalence of NCDs such as obesity, diabetes, and cardiovascular diseases.
The tax is intended to reduce the consumption of highly processed foods while encouraging healthier dietary habits. Despite the tax, fast food outlets have managed to maintain price stability, a move that has surprised some economists.

Economist and National University of Science and Technology (Nust) lecturer in the Department of Banking and Investment Promotion, Mr Stevenson Dlamini, suggested that the sector might already be generating supernormal profits.

“This means that despite tax increases, they can remain viable without increasing prices. Alternatively, it might reflect their innovative cost-cutting measures that have seen them redistribute the cost of tax compliance,” he said.

Consumers have expressed relief at the stable prices, as many had anticipated a significant rise following the tax introduction.

“It is great to see that fast food prices are stable for now, but I am not sure how long that will last,” said a customer buying fries at a local outlet.

Some fast food chains have reportedly adjusted packaging and portion sizes, but the stability in prices has helped ease consumer concerns.

The Fast Food Tax is part of a broader strategy to promote healthier culinary practices and diversify menu offerings. By making high-calorie, processed foods slightly more expensive, Government aims to incentivise consumers to opt for healthier alternatives.

The initiative also encourages food outlets and restaurants to adopt innovative approaches to preparing and marketing healthier meals, aligning with the national goal of reducing NCD prevalence.