Food and beverage industry gets sweetened deal with tax relief

The comment period for the proposed tax on sugar-sweetened drinks closed last week. The plan is to implement this tax on July 1.

Finance minister Pravin Gordhan announced a proposed tax on sugar-sweetened drinks in his February 2017 budget speech.

After much deliberation on the 140 comments received during public hearings in Parliament, National Treasury revised the proposed tax on sugary beverages.

Ismail Monomiat, Deputy Director-General of Treasury, says there were submissions from health experts as well as some representatives from the industry.

The health experts felt that we should in fact have a higher rate tax on sugary beverages... The industry was concerned about the loss of jobs.

Ismail Monomiat, Deputy Director-General of Treasury

When we took the comments into account, we decided that we will come in at a slightly lower rate and we will exempt the first four teaspoon of sugar in a can of soft drinks.

Ismail Monomiat, Deputy Director-General of Treasury

Priscilla Urquhart, Public Affairs and Communications Manager at Peninsula Beverages says the food and beverage industry welcomes the decision by Treasury to reduce the tax on sugary beverages.

She says they also recognise and acknowledge the health concerns associated with obesity.

To hear more about tax on sugary drinks, please listen below:

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Cosatu: Sugar tax must be a part of a broader health plan

Cosatu: Sugar tax must be a part of a broader health plan

Cosatu says that government's health intervention plan using sugar tax is lacking and want details on more comprehensive measures.

'We need regulation; We need a sugar tax', says Health sociologist

'We need regulation; We need a sugar tax', says Health sociologist

Health sociologist and researcher at Wits, Aviva Tugendhaft debates the public health benefit of imposing a sugar tax in SA.

'As the price of sugar goes up, consumption will go down'

'As the price of sugar goes up, consumption will go down'

Public health researcher Aviva Tugendhaft explains the importance of imposing a sugar tax in South Africa amid public hearings.

Sugar tax one of many measures, advises Health Dept

Sugar tax one of many measures, advises Health Dept

Parliament's committees on finance and health are hearing arguments on the pros and cons of introducing a sugar tax.

Why the SA Institute of Race Relations accepted funding from Coca-Cola

Why the SA Institute of Race Relations accepted funding from Coca-Cola

The institute's Gwen Ngwenya explains why it took money from Coca-Cola to fund research on taxing beverages containing sugar.

Fawu march to protest sugar tax

Fawu march to protest sugar tax

Food and Allied Workers Union says sugar tax will lead to job losses and questions why only sugary drinks are being targeted.

Dunkin Donuts celebrates ahead of International Coffee Day

Dunkin Donuts celebrates ahead of International Coffee Day

Capetalk employees received a pleasant surprise from Dunkin Donuts, celebrating International Coffee Day.

How the sugar tax will affect you

How the sugar tax will affect you

Concerns have been raised regarding mass job shedding with the sugar tax coming into effect in April 2017.

The world is getting fatter (and fatter)

The world is getting fatter (and fatter)

Professor David Sanders, Head of the School of Public Health at UWC, explains why the global population is getting fatter by the year.

'Sugar tax will not yield the desired results' - Beverage Association

'Sugar tax will not yield the desired results' - Beverage Association

The Beverage Association opposes the plans by the Finance Minister to introduce sugar tax in the following year to help curb obesity.

Popular articles
Cape: 88 days of water left, tougher water restrictions on the cards

Cape: 88 days of water left, tougher water restrictions on the cards

With 13.5 percent of usable water left, Councilor Xanthea Limberg talks to Kieno Kammies about the City's plans.

How I met your mother- who is 25 years my senior

How I met your mother- who is 25 years my senior

Emmanuel Macron's history of how he met his wife has been met with some criticism.

Warder recalls "prison hell" as he retires after four decades at Pollsmoor

Warder recalls "prison hell" as he retires after four decades at Pollsmoor

Chris Malgas speaks about his experiences as a prison warder at the notorious Pollsmoor prison for four decades.

Sea Point's Mojo Market opens for business on Thursday

Sea Point's Mojo Market opens for business on Thursday

A new lifestyle market is set to open in Sea Point, offering a variety of food, art, fashion and entertainment seven days a week.