RESPITE FOR MANUFACTURERS
Why the beverage industry is relieved about sugar tax
The Beverage Association of SA welcomes the small respite for drinks manufacturers and importers in Pravin Gordhan budget
The Beverage Association of SA (BevSA) has welcomed the Treasury’s revised plans for a tax on sugary drinks. The plans are open for comment until March 31. On Wednesday Finance Minister Pravin Gordhan said the proposed sugar tax now gives drinks manufacturers and importers some respite, as it has been slightly reduced and will only kick in above the 4g per 100ml threshold. The tax has been trimmed from 2.4c per 100ml to 2.1c per 100ml. The tax is intended to decrease consumption of sugary drinks by raising its price. Sugary drinks are associated with obesity, which raises the risks of noncommunicable diseases. "Over the past few months we have continued to engage with the government and other stakeholders actively to find a workable solution to the complex challenge of obesity in SA," said BevSA executive director Mapule Ncanywa. "We believe that through collaboration with all the relevant role players, we can find ways to create a win-win [situation] for all South Africans, contrib...
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