Beverage association joins ‘sugar tax’ fight
ALEXANDRA - Alex wages a war against the proposed sugar tax which will the public taxed when buying non-alcoholic drinks in similar fashion to beer, spirits and wines.
The Beverage Association of South Africa has joined the fray and supports the fight against the proposed introduction of a sugar tax on soft drinks and other non-alcoholic beverages.
The Centurion-based association’s executive director, Mapule Ncanywa, whose organisation represents most of the manufacturers of non-alcoholic beverages in the country, said in Alexandra during a press conference that they were worried about the negative impact the proposed taxation would have on the industry and jobs.
“I can foresee job losses coming thick and fast after the implementation of the tax. We stand to lose 24 percent… in volume sales and about 31 percent in job losses at a time when the job market is severely strained as a result of the poorly performing economy,” Ncanywa said.
She added that she was expecting about 3 500 indirect jobs to be lost once the government implemented the tax, and more down the value chain. “We’re calling on the government to re-look at this proposal and conduct their own socio-economic research into the consequences that might be created by the imposition of the tax.
“We don’t want to be another Mexico, and other countries too, that implemented the tax with disastrous consequences for the economy, jobs and social life.”
Silas Hermans, the chairperson of Tshebedisano Support Network, which is a support organisation for small businesses based in Alexandra, echoed the fears on job losses expressed by Ncanywa and called for more consultation with affected parties, stakeholders and the communities at large. “One of our major concerns is the failure of the government to adequately consult.
“Our government tends to do a smoke screen consultation in order to justify the implementation of a programme on the people. This shoving of ideas and programmes down the people’s throats must come to end. We want to be consulted and our views respected and appreciated. The process of consultation is a fundamental right and the lack of it is a violation of our Constitutional rights.”
