Proposed tax to sugary drinks: changes hailed

THE BEVERAGE Association of South Africa (BevSA) yesterday welcomed changes to the proposed Sugar Sweetened Beverages (SSBs) tax outlined in the Budget speech.

However, BevSA maintained its concerns about the negative economic impact, limited health gains, as well as inadequate baseline studies in a submission to the National Treasury on the matter.

The Draft Rates and Monetary Amounts and Amendment Bill tabled in Parliament by the former finance minister Pravin Gordhan in February incorporates a tax on sugary beverages and represents the first indication of how Treasury’s proposed Health Promotion Levy may manifest in law.

While acknowledging and agreeing with the World Health Organisation targets on sugar consumption and supporting initiatives to reduce total sugar intake in a sustainable way, BevSA said it remained concerned that there had been disproportionate focus specifically on sugar in bevera ges as a source of calories.

BevSA executive director Mapule Ncanywa said the National Economic Development and Labour Council (Nedlac) and parliamentary processes now in motion offered an opportunity for all interested parties to engage, and together develop an effective anti-obesity solutions that would not lead to job losses, while still meeting health objectives.

Win-win needed Ncanywa said that singling out one beverage category and taxing it punitively did not make sense even though the industry admits that obesity is a problem.

“Surely such a win-win as a South African solution should be given an opportunity.

To do this full consultation across unions, civil society, government and business is required and more information and research,” Ncanywa said.