South Africa: Will the Sugary Drinks Tax Be Increased in the Budget Speech This Year?
The Health Promotion Levy has not increased since 2022. Civil society groups want the finance minister to announce a shift from 11% to 20%.
Implemented in 2018, the Health Promotion Levy (HPL), popularly known as the sugar tax, taxes only sugar-sweetened beverages with sugar exceeding 4g per 100ml of drink.
The tax has not increased since 2022, and civil society groups want it raised from 11% to 20%.
The HPL was introduced to lessen the consumption of sugar-sweetened beverages, which contribute to the rising tide of diabetes and obesity in South Africa. Evidence showed that the tax initially worked in lessening consumption in poorer households.
What is likely to happen at this year’s Budget speech on 25 February, with the HPL?
What civil society wants to happen with the HPL
“Based on previous Budget speeches, Finance Minister Godongwana appears far more worried about the profits of companies like Coca-Cola than about the health of our people. Ever since Godongwana became finance minister the health tax on sugary drinks has not increased. We need to question the extent to which the sugar industry has captured government decision-making on this issue and whose interests are being served,” said Koketso Moeti, founding executive director of Amandla.Mobi.
“The Union Against Hunger fully supports the Health Promotion Levy, and we believe that the levy should.
By Daily Maverick.
