BUDGET 2023: Sugar industry thrown a sweetener, but sobering news for sin taxes

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The Finance Ministry hikes taxes on tobacco and alcohol, while the sugar sector catches a break.

Tobacco products and alcohol have just become almost 5% more expensive but the Finance Ministry has thrown a lifeline to the sugar industry by not increasing the sugar tax.

Health activists argue that the levy is too low to have a substantive impact on health outcomes, while the sugar industry says the introduction of the levy in 2018 exacerbated a decline in the sector, with the industry losing revenue to the tune of about R1.2-billion per season. The association has called for a three-year moratorium on an increase in the HPL, saying: “Any increase of the HPL and lowering of the current threshold pose a big threat to the very continued existence and survival of the industry – it would devastate the industry and mean the end of the sector as we know it.

The government has raised about R2.3-billion – R37-million from import duties – from the HPL on sugar-sweetened drinks in the fiscal year through March 2022. Montso said that while the levy has pushed billions into the state’s coffers, it is not ring-fenced and Treasury has not shown any evidence of using the money to help with food availability and healthy food issues.“Ideally, it would be ring-fenced to help with, for instance, subsidising for communities with purchasing healthy foods or maybe having things like food vouchers where people can use those vouchers and actually buy healthy food.

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The vaping bit is a bit questionable but ok.

Just needs to be clarified & GeorginaCrouth vaping is significantly less harmful than smoking. ENDS=Vaping

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