Nothing sweet about SA’s sugar tax while association challenges obesity link

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The local sugarcane growers’ industry says government has failed to produce any evidence that an increase in the so-called sugar tax has succeeded in reducing obesity since it was introduced in 2018.

JOHANNESBURG - The local sugarcane growers’ industry has raised concerns, saying government has failed to produce any evidence that an increase in the so-called sugar tax has succeeded in reducing obesity since it was introduced in 2018.

The Sugarcane Growers’ Association said the tax had cost South Africa more than 16,000 jobs and R2,05 billion in revenue.The association has been calling for Finance Minister Enoch Godongwana to scrap the sugar tax altogether. The sugar tax was introduced in 2018 with the aim of reducing obesity. However, the association said there was little to no evidence that it was working.

SA Canegrowers CEO Thomas Funke said, “The increase would’ve exacerbated the industry already faces due to rising import costs. In particular, diesel fuel is already 40% higher than in March 2021 and fertiliser has increased by more than 160% in comparison to last year. It is critical that government now focus on the long-term effect of keeping the tax in place.”

 

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