Maintained sugar tax a boost for industry
The priority is job retention, as well as the survival and growth of the 21 581 small-scale growers
Although it had hoped for a reduction in sugar tax, the SA Canegrowers Association said maintaining the current rate is still a relief for the sector.
According to a statement issued by the association, National Treasury’s recent decision not to increase costs will allow the industry to preserve 65 000 direct jobs.
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The health promotion levy (sugar tax) is currently fixed at 2.21c/gram of the sugar content that exceeds 4 grams per millilitre, a tax rate of about 11%.
‘What is critical now is that the other commitments made in the Sugar Industry Masterplan are implemented as soon as possible,’ the statement reads.’
‘SA Canegrowers has consistently called for a socio-economic impact assessment study on the impact of the sugar tax.
‘This will enable government and industry to analyse the need and efficacy of any tax or supposed health promotion levy from a factual basis.’
The association said a survey conducted in the first year of the sugar tax found that the sugar industry had lost in excess of 9 000 jobs in the cane growing sector alone.
‘A comprehensive report should also include the impact on other affected industries, including the sugar-sweetened beverage industry, which has suffered similar devastating job losses.’
The statement concluded that the priority is job retention, as well as the survival and growth of the 21 581 small-scale growers in the industry who ‘create economic opportunities in deep rural areas where they are most needed’.
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