BL Premium reports that SA’s struggling sugar industry has launched a fresh bid for the sugar tax to be scrapped, arguing that there is no evidence the levy has had a positive impact on obesity levels in the country.
In a written submission to Finance Minister Enoch Godongwana, SA Canegrowers called for the sugar tax, which is due to be increased next year, to be scrapped to save the sector where 1-million livelihoods are at stake. The levy, which went into effect in April 2018, sought to reduce obesity levels, thereby decreasing the burden of diseases such as diabetes and high blood pressure on the healthcare system. In February, Godongwana announced his intention to increase the health promotion levy from 2.21c to 2.31c per 100g of sugar and to lower the 4g threshold. To allow for further consultation, Godongwana suspended the implementation of the increase until 1 April 2023. In his submission, Andrew Russell of SA Canegrowers argued that to increase the sugar tax under present circumstances would further cripple the industry and lead to thousands more job losses in addition to the more than 16,000 jobs already lost because of the sugar tax. Modelling by the Bureau for Food and Agricultural Policy shows that maintaining the sugar tax at the current level will still cost the industry a further 15,984 seasonal and permanent jobs,
- Read the full original of the report in the above regard by Mary Papayya at BusinessLive (subscriber access only)
- Read too, Sugar industry calls for scrapping of sugar tax, again, at Moneyweb
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