Call to rethink sugar tax on beverages

THE BEVERAGE Association of SA has called on the government to find other ways of raising revenue instead of imposing a sugar tax on beverages as this would harm the industry and lead to a jobs bloodbath. The organisation said yesterday the government should conduct further research as taxing soft drinks would hardly achieve the objective of reducing obesity in the country. By using reformulation and promoting light and zero-sugar options, the industry said it could reduce calorie consumption. “A 14 percent reduction in daily calorie intake is two to five times what the proposed tax on sugar sweetened beverages would achieve.” In his budget speech last year, Finance Minister Pravin Gordhan said the government wanted to implement a tax on sugary beverages. – Kabelo Khumalo