CANE GROWER ASSOCIATION URGES HALT TO SUGAR TAX

THE SA CANE GROWERS’ Association (SACG) yesterday urged Finance Minister Tito Mboweni to urgently halt the struggling sugar tax that was crippling the sugar industry and causing thousands of job losses, which it said could be the “final nail in the coffin”. It said since it was implemented in April 2018, the sugar tax, also known as the “health promotion levy”, had cost the sugar industry around R1.5 billion, with the cane growing sector alone losing close to 9 000 jobs in the first year. “This number is climbing and thousands more have been lost in the sugar-milling and beverage industries. The impact of the sugar tax on poor, rural communities is absolutely devastating,” it said. It said the tax had had a devastating impact on the livelihoods of small-scale growers, emergent farmers and thousands of workers living in rural communities. “Government has acknowledged that thousands of jobs in the sugar industry are at risk, and is working with us on a master plan to ensure a more diversified and sustainable sugar industry.” The sugar industry was already struggling as a result of weak protection against cheap imports, drought and plunging sugar prices. “The sugar tax could very well be the final nail in the coffin for an industry that supports one million livelihoods.” The organisation said If Mboweni was serious about ensuring inclusive economic growth and job creation, he would use his budget speech to halt the sugar tax until a full socio-economic assessment of its impact has been undertaken. I Staff Reporter