Proposed taxation of sugar-sweetened beverage tax

Treasury have published the proposal for the sugar tax on beverages on its website and are asking members of the public for comment. This follows after Finance Minister, Pravin Gordhan, announced in his budget speech that sugary drinks would be subject to more tax. However, the tax has already been slammed by the beverage industry.  

In April of this year, Mapule Ncanywa, the spokesman for the industry body the Beverage Association of SA (BevSA) told Business Day that industry had no issues complying with new tax laws, but had concerns with regards to “discriminatory tax”. He questioned why the government was specifically targeting sugar-sweetened beverages and not all products that contain sugar, i.e. sugary cereals, chocolates etc.

But when Justmoney approached Xolisa Dodo, communication unit at the National Treasury, earlier this year, she assured, “The proposal does not necessarily mean that other products will not be considered in the future. It’s important to consider what is administratively feasible in the near term.”

For those who have had concerns or questions about this matter, the time to speak is now. The document is available on its website, and written comments can be sent to Mpho Legote (Mpho.Legote@treasury.gov.za) before the close of business, 22 August 2016.

For more information, click here.

To read the proposal, click here.