How will prices rise and what does
the sugar industry say?
The proposed tax is estimated to add up
to 11% to the cost of sweetened soft drinks
such as Coca-Cola. This is in contrast to the
initial proposal which was 20%, plus items
such as 100% pure fruit juice have now
The sugar industry, which opposed the levy,
has been under pressure since the turn of
the century and 20,000 jobs have been lost,
with the industry saying now that another
3,129 jobs will be under immediate threat
and 20,000 more in 5 to 7 years. There have
also been predictions that companies like
Coca-Cola will cut investment leading to
further job cuts.
What does the health industry say?
In conclusionTreasury forecasts an additional R1bn to
R1.5bn in annual revenue from the levy.
Licensing and registration of manufacturers
of sugary beverages will take place from
On balance the consensus seems to be
that a sugar-sweetened beverages tax will
bring in revenue to the fiscus (potentially
limiting income tax increases) and is likely
to have health benefits. Parliament is aware
of potential retrenchments and will be
monitoring the impact of the tax on the