SA’s ‘sugar tax’ debunked
Proposed levies of sugar-sweetened beverages (SSB) are aimed at reducing excessive sugar intake.
NEWCASTLE – A new policy paper and proposal on sugar tax, recently published by the National Treasury, is still open for public comment and written submissions.
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Proposed levies of sugar-sweetened beverages (SSB) are aimed at reducing excessive sugar in take. However, not all products with a bit of sugar will be subject to this levy; it will not apply to all nutritional labeling or 100 per cent fruit juice and unsweetened milk and milk products.
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The proposed taxation on all sugar-sweetened beverages in South Africa was announced by Finance Minister, Pravin Gordhan in February, noting the tax would be levied as from April 1 next year.
Recommendations of the policy paper are: a tax on sugar sweetened beverages based on sugar content must be implemented; this approach takes the view that SSBs have high sugar content but no nutritional value.
According to national media, using the current available price and sugar content of soft drinks as a reference point, the estimated tax would be in the region of R2.29 per litre of SSBs (2.29 cents per gram of sugar).
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