S Africa sugar association reacts to “sugar tax” increase

s africa sugar association reacts to sugar tax increase - S Africa sugar association reacts to “sugar tax” increase
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The South African Sugar Association (SASA) says it is disappointed at Finance Minister Tito Mboweni‘s announcement of an increase in the so called ‘sugar tax’ during his maiden budget speech.

The increase translates into an effective 11% tax on sugary drinks.

 

The Association says it needs to reformulate product manufacturing processes in order to reduce sugar content. SASA’s Chairman Hans Hackman says. “This is an impact that this has on our industry is very negative. If you look around domestic sales of sugar in this current financial year is that it will reveal the significant reduction in the demand for our sugar.”

Earlier the Healthy Living Alliance (HEALA) says it supports Finance Minister Tito Mboweni’s announcement that he will adjust the health promotion levy – or sugar tax – for inflation from the first of April this year.

In his speech Mboweni said the sugar levy would increase to 2,21 cents.

Executive Director of HEALA, Sibongile Nkosi says, “We welcomed the announcement of the adjustment of the tax, especially considering that it’s adjusting it to the inflation. I think from our side it shows a commitment from government that they are committed with the health promotion levy so from our side we are quite happy. It’s not at the rate at which we want it to be WHO recommends 20% so we’d actually want to see government continuously increasing the tax to see its effectiveness.”

 

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