Close Menu
    • ABOUT
    • BOOK STORE
    • ENTREPRENEURSHIP
    • ESG
    • EVENTS & AWARDS
    • POLITICS
    • GADGETS
    • CONTACT
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) LinkedIn
    Business explainerBusiness explainer
    Subscribe
    • TRENDING
    • EXECUTIVES
    • COMPANIES
    • STARTUPS
    • GLOBAL
    • AGRICULTURE
    • DEALS
    • ECONOMY
    • MOTORING
    • TECHNOLOGY
    Business explainerBusiness explainer
    Home » Sugar Tax Hike Could Raise R8.6 Billion
    ECONOMY

    Sugar Tax Hike Could Raise R8.6 Billion

    March 6, 2025
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Enoch Godongwana - Minister of Finance
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Public health advocates are urging Finance Minister Enoch Godongwana to increase South Africa’s sugar tax and extend it to fruit juices, arguing that such a move could generate at least R8.6 billion annually while also tackling rising obesity and diabetes rates. More than a dozen healthcare organisations and over 100 health professionals have signed a petition supporting this measure, including key research bodies such as the SA Medical Research Council/Wits Centre for Health Economics and Decision Science (Priceless SA) and the Progressive Health Forum. However, despite growing pressure from health experts, the minister’s draft budget scrapped the planned April 1 increase to the health promotion levy, citing the need to give the sugar industry more time to adjust to market challenges.

    The sugar tax, formally known as the health promotion levy, was introduced in 2018 to curb excessive sugar consumption by applying a charge of 2.1 cents per gram of sugar above a 4g threshold per 100ml. Since its implementation, the sugar industry has consistently opposed the levy, claiming it has led to significant job losses. Industry group SA Canegrowers estimates that over 9,700 jobs have been lost on sugar farms due to declining sugary drink consumption. However, public health advocates dispute these claims, citing research from Priceless SA, which found no direct link between the tax and employment losses. The petition argues that raising the levy to 20% of the retail price, as recommended by the World Health Organisation, would have a far greater impact on reducing obesity and related diseases while also being a more equitable alternative to a VAT increase, which disproportionately affects low-income households.

    The SA Sugar Association has dismissed the calls for a tax hike as unreasonable, arguing that obesity rates continue to rise despite the levy. The association warns that further taxation will exacerbate financial strain on the sugar sector, which has already suffered a multibillion-rand revenue loss, mill closures, and job cuts. Instead, industry leaders are calling for an extension of the current sugar tax moratorium until 2030, allowing time for diversification into alternative products such as bioethanol for fuel, sustainable aviation fuel, and cogeneration. As the debate continues, the finance minister faces mounting pressure to balance public health concerns with the economic stability of the sugar industry while preparing to present a revised budget to Parliament on March 12.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleGold Exports Drive Major Improvement in SA
    Next Article Transnet Workers Demand Massive Pay Increases 

    Related Posts

    Middle East War Threatens Africa’s Ratings

    April 24, 2026

    When Rising Fuel Costs Turn Into a Strategy Challenge

    April 24, 2026

    Approaching Equity Investing During High Geopolitical and Stagflation Risks

    April 23, 2026
    Top Posts

    Seven Families Sue OpenAI In ChatGPT Suicide Scandal

    November 10, 2025

    Volkswagen Chief Praises Chinese Competition for Sparking Innovation

    November 7, 2025

    WomenIN Festival 2025 – Limitless: No Labels, No Limits, No Apologies

    November 9, 2025

    Nersa Opens Public Consultation on Eskom’s New Tariff Calculation 

    October 24, 2025
    Don't Miss

    Mondi Shares Plunge on Warning

    COMPANIES

    Mondi shares tumbled more than 7% on Friday after the paper and packaging group reported…

    National Carrier Seeks Cash Again

    April 24, 2026

    Dis-Chem Puts 500 Roles Under Review

    April 24, 2026

    The Risks of Putting Off Estate Planning or Trying to Do It Yourself

    April 24, 2026
    Stay In Touch
    • Twitter
    • LinkedIn
    • Facebook

    Business Explainer proudly displays the “FAIR” stamp of the Press Council of South Africa, indicating our commitment to adhere to the Code of Ethics for Print and online media which prescribes that our reportage is truthful, accurate and fair. Should you wish to lodge a complaint about our news coverage, please lodge a complaint on the Press Council’s website, www.presscouncil.org.za or email the complaint to khanyim@presscouncilsa.org.za Contact the Press Council on 011 4843612.

    Facebook X (Twitter) LinkedIn
    Categories
    • TRENDING
    • EXECUTIVES
    • COMPANIES
    • STARTUPS
    • GLOBAL
    • AGRICULTURE
    • DEALS
    • ECONOMY
    • MOTORING
    • TECHNOLOGY
    contact us
    • Get In Touch
    © 2026 Business Explainer
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.