You asked: Does South Africa have a sugar tax?

South Africa’s 2018 Health Promotion Levy placed a tax on sugary beverages with the tax amount related to the amount of sugar in each drink. … They found a 51% reduction in sugar, a 52% reduction in calories and a 29% reduction in volume of beverages purchased per person per day following implementation of the tax.

Is there a sugar tax in South Africa?

The tax, colloquially known as the “sugar tax”, is charged on non-alcoholic sugary beverages, except fruit juices, and practically works out to about 10%-11% per liter of the sugary drink.

Who pays the sugar tax in South Africa?

The tax is a “duty at source” – in other words, paid by the producer – and calculated according to sugar content rather than the item’s total volume. Producers pay 2.1c per gram of sugar per 100ml, after a “free pass” for the first 4g per 100ml.

What countries have a sugar tax?


Countries When introduced Tax design
Samoa 1984 Volumetric
Saudi Arabia 2017
Seychelles 2019 Volumetric
South Africa 2018 Sugar content
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Why was the sugar tax introduced in South Africa?

Given that sugar-sweetened drinks contain variations in sugar levels, taxing them according to their sugar content is a more precise way of targeting the source of these products’ harm. It also gives beverage manufacturers an incentive to reduce the sugar content of their products.

Why is sugar taxed?

The government and health campaigners hoped the higher prices would put consumers off buying the most sugary drinks as part of the fight against obesity. … Some manufacturers reduced the amount of sugar in their drinks, helping them avoid the charges.

Did the sugar tax work?

It shows that the sugar tax on soft drinks introduced in 2017 has proved unexpectedly successful and has led to a 28.8% fall in the amount of sugar contained in such beverages. … The amount of sugar people consumed from such products rose by 16.3% during 2017-18, and from biscuits by 3.1%, PHE said.

How does the sugar tax work?

The sugar tax is a levy put on drinks companies to crack down on high sugar levels in soft drinks. Companies are now taxed according to the sugar content of their wares. One is for drinks with a total sugar content of more than 5g per 100ml, while a second, higher levy is imposed on drinks with 8g per 100ml or more.

Did the sugar Act tax sugar?

The act also listed more foreign goods to be taxed including sugar, certain wines, coffee, pimiento, cambric and printed calico, and further, regulated the export of lumber and iron.

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Is sugar tax a specific tax?

The UK government is using a specific tax to target the primary source of sugar for teenagers: soft drinks. The tax will be imposed on companies, based on the volume of high-sugar drinks (excluding fruit and milk-based drinks) they produce or import.

How much is the sugar tax in South Africa?

In 2018, the South African minister of finance introduced the Health Promotion Levy (HPL) on sugary drinks with more than four grams of sugar per 100 ml. The rate is fixed at 2.1 cents per gram of the sugar content that exceeds four grams per 100ml, i.e. the first four grams per 100ml are levy-free.

Does USA have sugar tax?

The first sugar tax to be introduced on soft drinks in the United States to fight obesity has cut sales by nearly 10% and apparently increased the numbers of people buying water instead, a study has shown. Berkeley, California, introduced a substantial tax on sugar-sweetened beverages on 1 March 2015.

How much is the sugar tax?

The tax that has been modelled is a specific excise tax based on sugar content, set at $0.40 per 100 grams of sugar (per unit of product).

How much sugar does the average South African consume?

South Africans consume between 12 and 24 teaspoons of sugar per day – four to eight teaspoons are from SSBs.

Is there a sugar tax in the UK?

The UK public is consuming less sugar following the introduction of the sugar tax on soft drinks. … Under this legislation, drinks with more than 8g sugar per 100ml are taxed at 24p a litre. Drinks with more than 5g – but less than 8g– are taxed at 18p a litre. Drinks with less than 5g are exempt.

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Who collects tax in South Africa?

The South African Revenue Service (SARS) is the nation’s tax collecting authority. Established in terms of the South African Revenue Service Act 34 of 1997 as an autonomous agency, we are responsible for administering the South African tax system and customs service.