THE beverage industry’s claims that a tax on sugary drinks will destroy tens of thousands of jobs in SA is unfounded, as consumers are likely to switch to alternative products, according to analysis published on Monday by Trade and Industrial Strategies (TIPS)."There are a lot of substitutes. That is the fatal flaw in their argument," said analysis author Neva Makgetla, the TIPS programme manager for trade and industry.She said increased demand for alternative products such as diet sodas would offset the drop in sales of sugar-sweetened beverages, and the resulting increase in output would offset the job losses in the sugary drink value chain.The Treasury is proposing a tax of 2.9c per gram of sugar in all sugar-sweetened drinks from next April, in a bid to curb obesity and associated health risks, such as diabetes. It said last week that it would publish an economic impact assessment in November.The Beverage Association of SA (BevSA) has vigorously attacked the proposed tax, saying...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.