Sweets for my sweet
· 1 min read
The draft legislation on the tax of sugary beverages was introduced to promote health, prevent disease and raise revenue. Globally these fiscal measures are increasingly recognised as effective complementary tools to help tackle the obesity epidemic at a population level.
A number of countries around the globe have levied taxes on sugar-sweetened beverages and many plan to do so.
The new proposal introduced a threshold of 4g/100ml below which the sugar content is not taxed. This is equivalent to almost a teaspoon of sugar per 100ml which will not be taxed. The tax will therefore only be applied to the additional sugar above 4g/100ml. This rate is slightly lower at 2.1 c/g, compared to the original proposed rate of 2.29 c/g.
Good news for the industry is the exemption for the time being of 100% fruit juice with no added sugar. This follows the international practice. Jurisdictions that have implemented the tax on sugary beverages have also exempted 100% fruit juice. Some health experts, however, have argued that 100% fruit juice should also be subject to the tax and the inclusion of 100% fruit juice in future is a possibility.
Public comment on this draft legislation was submitted on March 2017.
More from
Markets, business and trade
Does Government know what it’s costing you?
A decision made in Pretoria can change the way a wine business operates. But who makes sure the people making those decisions understand what happens on the ground? South Africa Wine’s Jordyn Goeieman takes us inside the often unseen work of influencing the policies that affect the industry.
All roads lead to Wine Paris
With professionals from more than 169 countries attending Wine Paris in 2026, the exhibition has become an increasingly important meeting point for the global wine trade. Nicolas Cuissard, Director of Wine Paris, speaks to WineLand about the exhibition’s growing international influence, opportunities for South African producers and what it takes to turn participation into business.
Before you bottle it, can you sell it?
A good wine and an attractive label are not enough to build a sustainable business. South Africa Wine’s Phil Bowes explains why finding customers, testing assumptions and understanding the numbers should come before committing to a new wine brand.