Government to proceed with the introduction of a sugar tax
South African consumers of sugar-sweetened drinks are set to feel the impact of the proposed sugar tax later this year as the relevant legislation is finalised for Parliamentary approval.
The National Treasury on Wednesday confirmed a proposed tax rate of 2.1c/g of sugar content in excess of 4 g/100 ml, with 50% of the taxes to be applied to concentrated beverages.
The proposed tax, which will be administered through the Customs and Excise Act (1964), has been revised to cover both intrinsic and added sugars in sugary beverages.
“The tax will be implemented later this year once details are finalised and the legislation is passed,” Finance Minister Pravin Gordhan said during the presentation of his 2017 Budget on Wednesday.
A portion of the revenue generated will be allocated to the support of health-promotion interventions, as part of South Africa’s ambitions of fighting obesity and noncommunicable diseases, with strategies including diabetes screening and nutritional education.
Despite the public backlash over the expected negative impacts of applying further taxes in an already strained economy, the National Treasury said its preliminary socioeconomic-impact assessment showed a relatively small effect on jobs, which could be further prevented “if companies reformulate their products”.
The move follows the publication last year of a draft policy paper and consultations with industry associations and other interested parties about the proposed tax.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOM
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
