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BusinessLive reports that labour federation Cosatu, Business Unity SA (Busa) and the SA Sugar Association (Sasa) have agreed that the introduction of a tax on sugar-sweetened beverages should be delayed as it would have a negative effect on employment in the industry.
The three organisations argued in Parliament on Wednesday that the team set up by Nedlac should be allowed to conclude its work and a socio-economic impact assessment study should also be undertaken. Busa said that time was needed for mitigation measures to be developed to counteract any negative effects of the proposed levy. The Treasury has proposed the tax as a way to deal with obesity and noncommunicable diseases such as diabetes. Cosatu highlighted the threat of job losses posed by the proposed tax and called for its implementation to be delayed so that a comprehensive transition and jobs plan could be developed. Cosatu’s parliamentary liaison officer, Matthew Parks, pointed out that the Treasury had estimated that the introduction of the tax would cause 5,000 job losses.
- Read this report by Linda Ensor in full at BusinessLive
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