House­keep­ing de­rails tax train

THE AMOUNT THAT THE SUGAR TAX COULD POS­SI­BLY GEN­ER­ATE FOR THE COUN­TRY’S FISCUS IN THE FIRST YEAR OF IM­PLE­MEN­TA­TION

CityPress - - Business And Tenders & Auctions - JUSTIN BROWN justin.brown@city­press.co.za

The im­ple­men­ta­tion date of April 1 this year for the sug­ar­sweet­ened bev­er­ages tax could be post­poned. This ow­ing to con­cerns about the im­pact on lo­cal jobs amid stag­nant growth, as well as the fact that there was a lot of com­pli­ance work that needed to be done be­fore the new tax could be im­ple­mented.

Severus Smuts, Deloitte in­di­rect tax direc­tor, said this week that there was a big de­bate about whether the sugar-sweet­ened bev­er­ages tax would achieve what it set out to do, which was to im­prove the health of the South African pop­u­la­tion.

Smuts ex­pected the sugar-sweet­ened bev­er­ages tax to be post­poned, given con­cerns about the im­pact on lo­cal jobs amid stag­nant growth. Fi­nance Min­is­ter Pravin Gord­han said dur­ing his bud­get speech last year that the sugar tax would be im­ple­mented on April 1.

“There are a lot of house­keep­ing things that they need to fine­tune in the leg­is­la­tion and the rules. That de­bate hasn’t been fin­ished. There are two rea­sons [for the pos­si­ble post­pone­ment] – is the tax go­ing to achieve what we set out to achieve? Se­condly, are you ready to put out the fi­nal le­gal­i­sa­tion?

“There is a host of com­pli­ance that needs to be done be­fore you can start ac­count­ing for the sugar tax. “I won­der if they will im­ple­ment it at all.” Deloitte is fore­cast­ing that the proposed sugar-sweet­ened bev­er­ages tax could gar­ner be­tween R4 bil­lion and R11 bil­lion in tax rev­enue in its first year.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.