Gorhan taxes that sweet tooth, increases sin tax

Reading Time: 2 minutes

Minister of Finance Pravin Gorhan is trying his best to make South Africa a healthier nation, and is doing so by hitting straight into people’s pockets to ensure that promoting public health and social wellbeing is achieved.

The minister on Wednesday delivered his Budget speech and one of the proposals in the speech included taxing
The introduction of such a tax has been put forward for 1 April 2017, all with an aim to help reduce excessive sugar intake.
Reason for such at ax comes from obesity stemming from over consumption of sugar, which is a global concern.

Over the past 30 years the problem has grown in South Africa, which has the worst obesity ranking in sub-Saharan Africa, and led to greater risk of heart disease, diabetes and cancer.

However, the Minister also took aim at people who enjoy indulging, raising excise duties on alcoholic beverages and tobacco products, as has been the trend since 2002.

Excise duties on alcoholic beverages (particularly beer, ciders, fruit beverages and spirits) will increase by between 6.7% and 8.5%.

Smokers were again hit in the pocket with and increase of 82c per packet of 20s packet for cigarettes and cigarette tobacco has gone up by 94c per 50g whilst pipe tobacco has gone up by 27c per 25g and cigars R4.32 per 23g.

– By Luvuyo Mdeni