Sugar levy effective from April 1 next year

SOUTH Africa’s revenue service said yesterday it would start collecting a contentious levy on sugar from April.

Former finance minister Pravin Gordhan proposed the tax on sugary drinks last year, saying it was meant to fight obesity, said to affect 42% of women and 13% of men in South Africa.

Sars said it would collect the Sugary Beverages Levy from April 1, 2018, after Parliament this month passed the Rates and Monetary Amounts and Revenue Laws Amendment Bill paving the way for it.

“Imported products will be taxed when they are cleared for home consumption and locally manufactured products will be taxed at source,” it said.

“The levy is part of government’s programme to prevent and control noncommunicable diseases and assist in the prevention and control of obesity.”

The sugar industry has spoken out against the levy, which the SA Sugar Association says will put more than 3 000 jobs at risk and put smallscale growers out of production.

Sars said levy returns and payments could be submitted through its electronic system and at customs and excise branches.

Licensing and registration of manufacturers of sugary beverages would take place from February, it added.

Only commercial manufacturers that produce beverages with a total annual sugar content in excess of 500kg were required to be licensed and pay the levy, which is fixed at 2.1 cents per gram of the sugar content that exceeds 4g per 100ml. – African News Agency/ANA