PRETORIA – Government plans to tax your Coca-Cola, Fanta and ice tea from 2017, as it introduces a sugar tax to curb life style diseases and obesity.
Finance Minster Pravin Gordhan announced the proposal in the 2016 Budget Review speech this afternoon.
Government will tax sugar-sweetened beverage in a similar manner to alcoholic drinks.
“Obesity stemming from overconsumption of sugar is a global concern. Over the past 30 years the problem has grown in South Africa, which has the worst obesity ranking in sub-Saharan Africa, and led to greater risk of heart disease, diabetes and cancer,” the 2016 Budget Review says.
“The Department of Health has published a policy paper on the growing problem of obesity. Fiscal interventions such as taxes are increasingly recognised as complementary tools to help tackle this epidemic.
“Countries such as Denmark, Finland, France, Hungary, Ireland, Mexico and Norway have levied taxes on sugar- sweetened beverages.”
The Review says the tax could be introduced on 1 April 2017 “help reduce excessive sugar intake.”