South Africa plans to introduce "sugar tax" in 2018
The tax on sugary drinks was proposed two years ago in an attempt to halt diseases linked to obesity, which are fuelled by sugary drinks. The proposed tax on sugary drinks is likely to be introduced in April 2018, although there is still disagreement on the exact level of tax.
Health24 reports.
Initially, Treasury proposed a 20% tax but this year it offered a compromise – exempting the first 4 g of sugar per 100 ml from the tax – to encourage industry to reduce sugar in its products. Thereafter, it wants to tax every gram of sugar above 4 g at a 2,1 cents.
All parties accept that the tax – already delayed by a year to allow the negotiations – will be implemented in April next year.
However, Treasury warns that the low rate of taxation might not get people to drink fewer sugary drinks.
The health sector sais that it is important to double or triple the tax to really hit people in the pocket.
This is a low threshold, but it is an important signal that thereis a serious issue of obesity. The Treasury is starting low but if this is not good enough, the tax will be increased until the needed result is got.