CONTESTED LEVY: Sugar tax sparks health, jobs, affordability debate ahead of SA’s mini budget
As the mini budget approaches, debate over the Health Promotion Levy centres on public health, affordability, consumer behaviour, job losses and the future of sugar farming.
As South Africa's mini budget looms, a contentious debate surrounds the Health Promotion Levy, a tax on sugar-sweetened beverages designed to curb obesity and non-communicable diseases like diabetes. Civil society groups, like the Healthy Living Alliance (Heala) and the South African Canegrowers Association, are calling for a change to the levy.
Heala CEO Nzama Mbalati advocates for a dramatic increase from its current 11% to 20%, citing research that this could reduce sugary drink consumption by 20% and lower obesity and diabetes rates. The World Health Organization backs this recommendation. Heala also believes that the revenue from an increased levy should go toward improving nutrition and addressing non-communicable diseases.
However, the Sugar Industry is pushing for the levy's elimination, arguing that its introduction has caused job losses and further threatens sugarcane farmers, many of whom are already grappling with imported sugar from countries like Brazil, Thailand, India and Eswatini. Mbalati maintains that sugarcane farming in South Africa would continue to shrink if the levy remains in place.
While some studies suggest the levy hasn't caused job losses, the Healthy Living Alliance contends that public health should override economic concerns. Senior researcher at the Noakes Foundation, Karen Heath, advises caution against raising the levy and instead recommends investing in health education programs to address the consumption of sugary drinks.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
