LEVY PROPOSALS: Sugar industry calls for freeze on sugar tax, asks government for a sweeter deal

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 84%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

The South African Sugar Association has appealed to the government ahead of the Budget next week to freeze the health promotion levy on sugary beverages (such as Coke) — the sugar tax, as it is better known — for the next three to five years.

First introduced in 2018, the tax is currently 2.21 cents per gram and is applied to non-alcoholic sugary beverages that contain more than four grams of sugar per 100ml. The tax was meant to increase to 2.31 cents per gram from April 2022, but the inflationary increase was suspended for 12 months to allow for consultation with the sugar industry.

A Sugar Association survey shows that an inflationary adjustment is unlikely to lead to significant reductions in demand, as most manufacturers have already reformulated their drinks to meet the current minimum threshold of 4mg of sugar per 100ml.“Any increase to the HPL or lowering of the threshold will have a disastrous impact on the entire sugar cane chain.

These are encouraging statistics, more so given the obesity problem that the country faces, with half of South African adults either overweight or obese. Trikam says the industry has lost around R1.2-billion of revenue per season since the sugar tax was first introduced and blames the tax for the closure of two sugar mills in Darnall and uMzimkulu.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

It will fall on deaf ears…..it’s not anout health it’s about money

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Increase in sugar tax will lead to job losses and decimate sugar industry - Sasa | City PressThe SA Sugar Association (Sasa) has pleaded with government not to increase the Health Promotion Levy - colloquially referred to as the sugar tax - which the organisation says has already had devastating effects in the sugar industry as a rise will 'decimate the industry'.
Source: City_Press - 🏆 7. / 72 Read more »

How a South African solar-powered mobile cinema is creating jobs for young people | BusinessA solar-powered mobile cinema initiative is making locally relevant films more accessible to African audiences, while also creating opportunities for training and jobs. _Business White young people obviously excluded
Source: News24 - 🏆 4. / 80 Read more »