HALT SUGAR TAX INCREASE FOR THREE YEARS, PLEADS SOUTH AFRICAN SUGAR ASSOCIATION

THE SOUTH African Sugar Association (Sasa) has called for the government to not hike the sugar tax, or Health Promotion Levy (HPL) for at least three years. Sasa Executive Trix Trikam in a statement yesterday said this week industry participants presented the case for the sugar industry to MPs and Ministers during the Taking Parliament to the People programme in KwaZuluNatal. “Our main request is that there should be no sugar tax or HPL increases for at least three years and there should be no lowering of the current threshold while we pursue diversification opportunities – through the master plan process – to ensure the sustainability of the industry,” he said. Following implementation of the HPL in 2018, the industry has shed more than R8 billion in revenue, Sasa said, while the industry had lost close to 10 000 jobs, according to an independent study commissioned by Nedlac. It also had to close two mills “due to the HPL exacerbating the already dire financial state of the sector,” he said. “We are very pleased that Trade, Industry and Competition Deputy Minister Fikile Majola recognised the serious issues facing our industry, especially his agreeing with views expressed by farmers and workers that the HPL has had a deleterious impact on the industry since its introduction in April 2018. “We are further encouraged by his undertaking that he would engage with National Treasury and Department of Health on the matter,” Trikam said. At his Budget Speech in February 2022, Finance Minister Enoch Godongwana announced an increase in the tax, but this was subsequently postponed to April 2023 in order allow for further consultation on lowering the 4g threshold and extending the levy to fruit juices. | Reporter