Sugar industry questions impact of health promotion levy
The government introduced the tax on sweetened beverages in 2018 to lower incidents of diabetes and obesity.
We asked the major parties contesting the May elections what they would do to regulate the fast food and sugar industries. Photo: Ashraf Hendricks/GroundUp
JOHANNESBURG - The sugar industry has again questioned the impact of the health promotion levy amid calls to scrap sugar tax or freeze increases.
The government introduced the tax on sweetened beverages in 2018 to lower incidents of diabetes and obesity.
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But the National Treasury agreed to halt increases during the 2023 budget as the sugar industry tried to recover from tough business conditions.
The chairman of the SA Canegrowers, Higgins Mdluli, said despite what appears to be a drop in the consumption of sugar-sweetened beverages, it doesn’t appear to have had a positive health implication so far.
Instead, Mdluli said the levy has had a damaging economic impact.
“Most of our sugarcane farmers are small-scale growers who are anchors of employment in their communities, since its introduction in 2018, the sugar tax has destroyed jobs on farm lands.”