Paying a bitter price for that sweet tooth

The sugar industry says the Health Promotion Levy, introduced to reduce the consumption of sugar products, is wiping out jobs. Dr Sifiso Ntombela argues for a thorough assessment of the effects of this tax on the industry.

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Globally, there is an increasing prevalence of diet-related non-communicable diseases (NCDs) driven by rapid urbanisation, changes in consumer food tastes and nutritional imbalances.

The rise of NCDs is associated with obesity, a problem caused by the overconsumption of sugary beverages and products.

This is why the World Health Organization advocates healthy-eating policies. As a result, countries such as South Africa, Australia, and others have implemented a sugar tax.

In South Africa, obesity is estimated at 40% of the population, the highest in sub-Saharan Africa.

Statistics South Africa breaks down this figure into about 68% for women and 31% for men. These are men and women prone to diabetes, heart disease, and strokes.

Based on these figures, government promulgated the Health Promotion Levy (HPL), also known as the sugar tax, in 2018.

Initially, the levy was set at 2,1c/g of sugar content greater than 4g/100ml.

In 2019, the levy was increased to 2,21c.

According to the National Treasury, the sugar tax brought in R2,2 billion in tax revenue in 2021, 6,9% higher than the year before.