Treasury to hold workshop on sugar tax

THE NATIONAL Treasury yesterday confirmed it will hold a stakeholder workshop in November to discuss the proposed tax on sugar-sweetened beverages.

This comes after the Beverages Association of SA (BevSA) last week warned the tax had the potential to reduce the industry’s contribution to GDP by R14 billion and had the potential to cut about 60 000 jobs.

BevSA has since encouraged the Treasury to publish a socio-economic impact study on the likely effects of the proposed tax.

But the Treasury has stated such a study would be released in due course and it would host a workshop where all parties would deliberate on the sugar tax issue.

“The proposed workshop will form part of the consultation process. All stakeholders who provided written comments will be invited to this workshop,” the Treasury said.

Together with other independent organisations such as KPMG, BevSA said the impact assessment study was needed to ensure the Treasury had a full understanding of the negative impacts the proposed tax would have on the economy.

“An impact assessment is an essential part of evidence-based policy-making,” BevSA executive director Mapule Ncanywa, said.

“Studies commissioned by BevSA have indicated that the beverage industry stands to lose in excess of 60 000 jobs across its value chain and will see its R14bn contribution to the economy eradicated if the tax is implemented.”