NATIONAL Treasury has published a policy paper and proposals on the taxation of sugar sweetened beverages for public comment. Minister of Finance, Pravin Gordhan, in February this year, proposed to introduce a tax on sugar-sweetened beverages (SSBs) with effect from 1 April 2017 to help reduce excessive sugar intake.
“These strategies set an ambitious target of reducing obesity prevalence by 10 per cent by 2020. This strategy has identified a number of measures to address NCDs, and more especially unhealthy diets. Among these measures, taxes on foods high in sugar are potentially a very cost-effective strategy to address diet related diseases,” said Treasury.
The proposed tax comes against the backdrop of growing global concern regarding obesity stemming from over-consumption of sugar.
“Obesity is a global epidemic and a major risk factor for the growing burden of NCDs, including heart diseases, diabetes and some cancers. The problem of obesity has grown over the past 30 years in South Africa, resulting in the country being ranked the most obese country in sub-Saharan Africa,” said Treasury.
The document is available on www.treasury.gov.za. Written comments can be sent until end of business on 22 August 2016.
