South Africa has seen large reductions in purchases of sugary beverage volumes since the country’s sugar tax was announced in 2016, according to a new study published this month. The Health Promotion Levy taxes applicable beverages at around 10%.
Is Sugar taxed in South Africa?
Three years ago South Africa introduced Africa’s first major tax on sugar-sweetened beverages based on grams of sugar. The tax now stands at about 11% of the price per litre.
What is the purpose of introducing sugar tax in South Africa?
The South African government introduced the health promotion levy on sugary beverages in support of the Department of Health’s strategic plan for the prevention and control of obesity. The objective was to reduce obesity by 10% by 2020 and other non-communicable diseases.
Is Sugar Tax elastic or inelastic in South Africa?
The magnitude of the CSD own-price elasticity is greater than one, implying that CSDs are price elastic with a 20% price increase corresponding to a nearly 24% reduction in demand for carbonated soft drinks.
How will tax on sugar-sweetened beverages benefit South Africa?
In 2018, the South African government implemented a 10% excise tax on sugar-sweetened beverages (SSB). Evidence from other countries suggests that a tax on SSBs is likely to reduce consumption and reduce the increasing burden of obesity-related non-communicable diseases.
What is sin tax in South Africa?
One type of tax or duty that by law must be paid by some industries is excise tax (sometimes inappropriately called “sin tax”). Excise tax, which is usually increased every year, is a special duty imposed on items that can cause harm to people, such as alcohol, tobacco, sugar and fuel.
What is the tax bracket in South Africa?
Calculate your income tax for 2021 / 2022
|Taxable income (R)||Rates of tax (R)|
|1 – 216200||18% of taxable income|
|216201 – 337800||38916 + 26% of taxable income above 216200|
|337801 – 467500||70532 + 31% of taxable income above 337800|
|467501 – 613600||110739 + 36% of taxable income above 467500|
How much is a sugar tax?
Manufacturers of soft drinks containing more than 5g of sugar per 100ml have been made to pay a levy of 18p a litre to the Treasury, or 24p a litre for sugar content over 8g per 100ml, since the tax came into force in April 2018.
Does sugar tax reduce obesity?
Sugary drink taxes have the potential to reduce sugar consumption. And in the longer term, especially if combined with “snack taxes”, may also help to reduce obesity and diabetes – as supported by a recent study published in the British Medical Journal.
Which institution is responsible for collecting taxes in South Africa?
The mandate of the South African Revenue Service (SARS) is to collect all revenues due, ensure optimal compliance with tax and customs legislation, and provide a customs and excise service that will facilitate legitimate trade as well as protect the economy and society.
Why the sugar tax is bad?
It seems straightforward: Taxing sugary beverages makes them more expensive, reducing consumption and leading would-be soda-guzzlers to lead healthier lives. Obesity declines, as do the myriad health conditions associated with a sugar-rich diet.
Why is the sugar tax good?
Consumption of sugar imposes costs on individuals (lower life expectancy) and the rest of society (higher health care costs + lower productivity). A tax on sugar would discourage consumption and raise tax revenue to fund improved health care.
Is Sugar taxed?
No state currently has an excise tax on sugar-sweetened beverages. Instead, soda taxes are levied locally in Boulder, Colorado; the District of Columbia; Philadelphia, Pennsylvania; Seattle, Washington; and four California cities: Albany, Berkeley, Oakland, and San Francisco.
What impact did the sugar tax have on Coca-Cola in South Africa?
Manufacturers. Producers of SSB have started to reduce the sugar content of their products to reduce sugar tax. Coca-Cola has reduced the sugar content of its SSB by 26%. Another strategy by manufacturers of SSB, was to reduce the volume of the product by 10%.
How is sugar tax implemented?
Overview. The Sugar Sweetened Drinks Tax (SSDT) came into effect on 1 May 2018 and applied to water and juice based drinks. … The supplier is liable to account for and pay the tax. The tax applies to water and juice based drinks which have added sugar and a total sugar content of five grams or more per 100 millilitres.
What is the main purpose of levying sugar tax?
Introduced in April 2018, the levy has helped dampen demand for sugary beverages, which are fuelling a rise in non-communicable diseases (NCDs) such as Type 2 diabetes, high blood pressure and obesity, and shift demand to healthier options.