Trade and Industry Committee notes concern from sugar industry regarding 'sugar tax'
28 February 2019
Parliament’s Portfolio Committee on Trade and Industry has taken account of the concerns raised recently by the sugar industry related to the impact on the industry of the implementation of the Health Promotion Levy (HPL), commonly referred to as the “sugar tax”, and has resolved to engage the Minister of Trade and Industry on the matter.
Committee Chairperson Ms Joanmariae Fubbs said the committee recently received correspondence to this effect, and of the mitigation measures agreed to at the National Economic Development and Labour Council (Nedlac) that would have ameliorated its impact, but which were not fully implemented.
Ms Fubbs said that although the HPL falls outside the mandate of Trade and Industry, “its implementation could, in the short-run, have an adverse impact on direct and indirect employment in the sugar industry. Other challenges such as transformation in the agricultural and agro-processing sectors”.
As for tariffs and illegal sugar imports into South Africa, the Chairperson pointed out that these have been addressed. It appeared that the South African Revenue Services encountered a computer glitch in this regard.