The Beverage Association of South Africa (BevSA) has welcomed the government’s decision to postpone the increase of the Health Promotion Levy (HPL) to 2023.
The National Treasury had indicated that there would be a hike in the HPL by 4.5% or another R 2,31 per gram of sugar.
However, the revised 2022 Draft Rates Bill now states that the sugar tax will remain the same until April 2023.
The sugar tax is charged on all non-alcoholic sugary beverages, except fruit juices.
BevSA’s Executive Director, Mpho Thothela says they are pleased by government’s decision.
“The decision to increase the sugar tax reaffirmed the government’s commitment to the sugar master plan, which was agreed upon between government and all the Nedlac (National Economic Development and Labour Council) participants to keep it unchanged until 2023. So, we are quite pleased with that decision by the government.
REPORT: Government considers applying health Promotion Levy or sugar tax on 100% fruit juice