BUDGET: SA Canegrowers welcomes no increase in sugar tax

SA Canegrowers on Wendesday said that it welcomes the decision by Finance Minister Enoch Godongwana not to enact any further increases in the Health Promotion Levy (or sugar tax) in his Budget 3.0.

"Introduced in 2018, the sugar tax cost 16 000 jobs and R2 billion in revenue in the first year of implementation alone, according to independent research by Nedlac. Any increase would risk the livelihoods of growers and increase unemployment in many parts KwaZulu Natal and Mpumalanga, where there are few other job opportunities," SA Canegrowers said. 

"The sugar tax has been nothing but destructive for South Africa. While the Nedlac study demonstrated concrete proof of job losses, no evidence has been provided to show the tax has reduced obesity or improved the health of South Africans in any way," it further stated.

The association said it believes that Treasury should scrap the tax, to help ensure that government drives job creation and economic growth, as per its commitments outlined in the Sugarcane Value Chain Master Plan 2030.

"This social compact between industry and government to revitalise the industry also has the potential to create new markets for sugarcane growers and kickstart new industrialisation projects in Mpumalanga and KwaZulu-Natal," Canegrowers said in a statement.  

"Agricultural jobs are critically important to the stability of South Africa and to making sure that we reduce rural poverty and hunger. SA Canegrowers will continue to strive for an end to this job-killing tax, calling on the government to prioritise desperately needed economic growth and jobs instead," it further said.

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