Sugar tax may cost SA R14bn and kill off 10 000 SMEs

A proposed levy on sugar sweetened beverages could cost South Africa R14-billion and destroy 10 000 small businesses‚ with highly uncertain benefits in terms of tax revenue and health benefits‚ the Beverage Association of SA (Bevsa) said yesterday.

Briefing the media on the industry’s submissions to the Treasury on the proposed levy‚ the industry said the tax would cost the fiscus R3.8-billion more‚ with small-scale farmers and spaza shops most affected.

An industry-commissioned study poked holes in the supposed fiscal and health benefits of the tax‚ Bevsa executive director Mapule Ncanywa said.
The industry called on the Treasury to make its own socioeconomic study on the effect of the levy available.

With the tax implications of 68 000 jobs and the collective cost of job losses to the fiscus‚ the tax represented a cost of R3.8-billion‚ Ncanywa said.

– BDLive

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