Sugar Tax

Sugar Tax

Government has decided to implement the Health Promotions Levy, which came to effect from 1st April 2018. The tax is imposed on Sugar Sweetened Beverages and will mainly affect the non-alcoholic beverage industry. The objective of the tax is to reduce the rate of non-communicable diseases and obesity in the country. In this regard the South African Revenue Service (SARS) has issued rules, which govern the management of the tax.

The rules determine that any person who manufactures or imports any sugary beverage that is liable to the levy on sugary beverages must determine and declare the sugar content of the sugary beverage.

The Beverage Association of South Africa is committed to comply with the tax and continue to support government efforts to achieve better health outcomes and for people to live a long and healthy life for all South Africans.

The Beverage Association of South Africa has taken note of the implementation of the Health Promotions Levy which will come to effect on the 1st of April 2018 as determined by the Minister of Finance
  • The non-alcoholic beverage industry has stated its concerns around the implementation of the levy, particularly around the absence of any impact assessment measures associated with the tax.
  • BevSA has walked a long journey with government and parliament on the matter and we hope that all necessary precautions have been considered to avoid any potential negative economic impacts.
  • The industry still believes that better health outcomes could have been achieved through industry initiatives and still reiterates that the levy should be implemented with caution and not become another revenue generating mechanism only, but to achieve the national health objectives.
The Beverage Association of South Africa members are committed and continue to contribute to “a long and healthy lifestyle for all South Africans”
  • The industry through Department of Health has undertaken and continues to improve commitments through the Healthy Food Options Forum (HFO), of which Department of Health is secretariat.
  • Industry will continue to work with the Department of Sports, Education and Health to educate all South African citizens about the benefits of maintaining a balanced diet and engaging in physical activity as part of a healthy lifestyle.
  • In line with the government objectives, the industry has introduced a number of lower to zero sugar product ranges within the existing portfolios; and reduced packaging sizes to encourage moderation consumption and help consumers reduce their kilojoule intake.
The Beverage Association of South Africa will and is determined to comply with the Health Promotions Levy and SARS regulations
  • The BevSA is working with its members to ensure that they are ready to meet the requirements of the implementation date, 1st of April 2018.
  • BevSA member will continue with SANAS accredited testing laboratories as part of its ongoing reformulation initiatives.
The industry remains committed to being part of a sustainable solution that leads to economic growth and reducing the rate of non-communicable diseases including obesity
  • We remain committed to the transformation and industrialist agenda of the industry, which will ensure participation of new entrants into the industry and black players to ensure a free and open market trade.
  • Through various initiatives, the BevSA will continue to be a government partner in reducing non communicable diseases and obesity
BEVSA

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