Don’t amend the Health Promotion Levy, also known as the Sugar Tax, next year. That’s the call of the South African Sugar Association. The organization, representing the Sugar Industry, which plays a regulatory role, without state funding, says the introduction of a tax on sugar-sweetened beverages in 2018 led to the closure of 2 Sugar Mills and 10 000 job losses in their sector alone.
Don’t expand the Sugar Tax
In the February 2023 budget, the industry was given a reprieve of 2 years, until 2025, that the tax would not increase over that time.
The Executive Director of SASA, Trix Trikam says any expansion of the Levy next year, would be disastrous. He says, that in the first year of the levy being introduced the Sugar Industry lost sales of 250,000 tonnes of sugar in the local market.
Exporting sugar at a loss
That sugar had to be exported. He says any sugar that is exported from the country is done at a loss.
“From studies that we have done in the Sugar Industry alone, job losses stood at about 10,000. That excludes any losses in the Beverage Industry,” said Trikam.
This then led to the proceeds of the sale decreasing by over 1 billion Rand in the first year.
Prevent job losses
Trikam also said that over 1 million people in the country are dependent on the Sugar Industry.
READ MORE: About the SASA
He says although there has not been a change in the Sugar Tax for the past 5 years, they are calling for the moratorium to be extended for another 5 years.
