South African health group suggests increasing sugar tax

The Healthy Living Alliance of South Africa (HEALA) has proposed an increase in the health promotion tax (or “sugar tax”) proposed for 2023, according to a report on the South African Business Technology website on Oct. 25. The “sugar tax” is levied on non-alcoholic sugary drinks and is equivalent to about 10% of the cost of each liter of sugary drinks. In his 2022 budget speech, South African Finance Minister Gordon Guana announced an increase in the “sugar tax” from 2.21c/g to 2.31c/g per 100ml of sugar in beverages containing more than 4g of sugar, initially expected to take effect from April 1, 2022, but delayed by one year to 2023. HEALA has made three recommendations to increase the “sugar tax”, including that the South African Treasury must increase the tax rate on sugary drinks to 20% per liter, lower the sugar threshold from 4g to 2g per 100ml, and include fruit juices in sugary drinks.

Source: Economic and Commercial Section, Embassy of the Republic of South Africa

Post time: Nov-02-2022