When the sugar tax was introduced in 2018 it collected R3.2-billion. From April to December 2019 revenue was at R1.95-billion. But lobbyists for the tax want it to be increased for it to be more effective.
“The WHO says that a 20% tax is where consumption decreases and more revenue increases are found,” said Heala’s Lawrence Mbalati. The tax, which is also referred to as the health-promotion levy, is fixed at 2.1 cents per gram of sugar content. But the first 4g per 100ml is not taxed. This is equal to almost a teaspoon of sugar per 100ml.
Hofman said the diseases that are caused by sugar cost the South Africa government 7% of gross domestic product. She said this is the combined total of the people who go to private and public hospitals to be treated for these diseases. The association says the tax in its current form will not have the desired impact to address obesity and other non-communicable diseases.
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