Why was the sugar tax introduced in South Africa?
The campaign to get the levy increased is based on the growing body of research showing that sugar is addictive, that it is harmful to people’s health and that it is overwhelming the country’s health system.
When was the sugar tax implemented?
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 South Africa have a sugar tax?
South Africa was the first African country to impose a tax of approximately 10% on the sugar in sweetened soft drinks in an attempt to curb rising obesity and related diseases including diabetes and hypertension.
Why was the sugar tax implemented?
What is sugar tax? The Health Promotion Levy (HPL) on sugary beverages is a levy that was introduced, in support of the South African Department of Health’s Strategic Plan for Prevention and Control of Obesity and aims to reduce obesity by 10% by 20205.
What is the sin tax on cigarettes in South Africa?
Current excise policy limits the excise to 40% of the retail price of the most popular price category of cigarettes. The targeted excise incidence for spirits is 36%, for beer it is 23% and for wine it’s 11%.
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.
Has the UK sugar tax worked?
These findings show that the UK’s sugar tax is working exactly as intended – and offer lessons for other countries exploring strategic regulatory options to promote healthier diets, say researchers at the George Institute for Global Health, in a linked editorial.
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.
Should sugar be taxed?
They found that taxing sugar would reduce sugar intake 8 percent more, impose 5 percent less of a burden on consumers, and collect 5 percent less revenue than would taxing volume. … In short, taxing sugar content is more efficient than taxing volume if the goal is reducing sugar consumption.