Effect of sugar tax on jobs ‘way, way less’ than industry forecast
Treasury says the socioeconomic impact study on the tax found its overall effect on the economy was negative, ‘but relatively small’
A sugar tax of 2.29c/gram on sweet drinks would result in a net decline in volumes sold of between 13% and 15%. This is the conclusion of a socioeconomic impact study conducted by the Treasury on the tax on sugary beverages. The results of the study were presented on Tuesday by Treasury chief director Cecil Morden during public hearings on the proposed tax held jointly by Parliament’s health and finance committees. The meeting was well attended by representatives of health organisations, cane growers and the sugary beverages industry, which has been lobbying hard against the proposed tax. The Treasury received 144 written comments plus 113 one-page petitions on the proposal. Finance Minister Pravin Gordhan announced the proposal to tax sugar-sweetened beverages in the 2016 budget, citing growing concern about obesity in the country. The tax would, among other things, increase the price of a litre of coke by 20%. The minister is expected to make further announcements on the proposed ...
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