SA sugar industry fights back against 'sugar tax' as budget looms

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South Africa News

South African sugar industry stakeholders have united in an urgent appeal to Finance Minister Enoch Godongwana, calling for a halt to the Health Promotion Levy ahead of the Medium-Term Budget. The industry warns of devastating job losses and economic impact if the levy continues or expands.

The signatories of the letter include the South African Sugar Association, the South African Sugar Millers' Association, the South African Farmers Development Association, SA Canegrowers, the Consumer Goods Council of South Africa, and the South African Sugar Converters Association.In an open letter addressed to Finance Minister Enoch Godongwana, industry representatives from the sugar value chain have called for an immediate moratorium on the Health Promotion Levy .

The signatories of the letter include the South African Sugar Association, the South African Sugar Millers' Association, the South African Farmers Development Association, SA Canegrowers, the Consumer Goods Council of South Africa, and the South African Sugar Converters Association. “These consultations are essential for affected and interested parties to provide factual information and data on the potential unintended consequences of the HPL, which will help guide the National Treasury decision-making process.”

“Any increase will further decimate the land under cultivation and force thousands of small-scale growers into abject poverty. An increased tax on sugar threatens the one million livelihoods the sugar industry supports and undermines both food security and economic stability in the provinces of Mpumalanga and KwaZulu-Natal where sugarcane is grown.

The open letter said need for cohesive government policies that align with the Sugarcane Industry Value Chain Master Plan to 2030. This initiative was established to create a sustainable framework for the sugar industry while addressing the HPL's negative effects.

 

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