Finance Minister Tito Mboweni’s decision not to hike the sugar tax in his budget speech offers a glimmer of hope to those who depend on the sugar industry for their economic survival.
The sugar tax has already cost the industry R1.5 billion, with 9000 jobs being lost in the cane growing sector alone. A tax hike would have resulted in thousands more jobs being lost in mostly poor rural communities.
While we are pleased that the national government did not give into to reckless calls by lobby groups such as HEALA to increase the sugar tax further, the tax still poses a serious risk to jobs in the sugar industry.
The only way we will be able to ensure the long-term sustainability of the industry, and to protect the one million livelihoods it supports, is for the sugar tax to be eradicated completely.
There is no evidence that the sugar tax works to curb obesity, but it is patently clear that the sugar tax kills jobs.
We will therefore continue our calls on national government to place a moratorium on the sugar tax until a full socio-economic assessment of its impact is undertaken.
Stopping this unnecessary tax is the only way the sugar industry can remain a long-term contributor to the South African economy and a job creator in rural communities.
