The sugar industry, which has been on the verge of collapse in recent years, has been dealt another blow after finance minister Enoch Godongwana announced a hike in the sugar tax.

The levy first came into effect in 2018 as part of government’s plan to improve the health of South Africans and to reduce the related costs for the public and private healthcare systems. While the tax has been broadly welcomed by health experts and advocacy groups as a first step in the right direction, it has left many producers facing huge losses. The situation was further worsened by low international prices and changing consumption patterns. ..

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