Treasury sweetens sugar tax proposal
Threshold set for levy to kick in, rate reduced and measure delayed
The Treasury has revised its proposal on taxing sugary drinks, offering beverage manufacturers and unions some relief while still pushing ahead with its overall plan. The aim is to curb consumption of sugar-sweetened beverages, associated with obesity and increased health risks, by lifting prices with tax. The Treasury has dropped the tax rate slightly, from 2.29c a gram of sugar to 2.1c a gram of sugar. And it is now proposing that the tax kicks in only above a threshold of 4g of sugar per 100ml. This would mean, for example, that only five of the eight teaspoons of sugar contained in a 340ml can of coke would be taxed, said the Treasury’s head of tax and financial sector policy, Ismail Momoniat.
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