Sugar tax: DA calls for debate on the taxing of 100% pure fruit juice

14 March 2022

Note to Editors: Please find an attached soundbite by Michele Clarke MP

Today I have written to the Chairperson of the Health Committee, Dr Kenneth Jacobs, to request a debate on the taxing of 100% pure fruit juice.

South Africa may become one of the few countries in the world to tax natural sugar in fruit juice. Currently, tax is applied to a range of soft drinks and juices that contained added sugars. Treasury however, would like to apply the Health Promotion Levy on 100% pure fruit juice.

Introducing a sugar tax on 100% fruit juice on natural sugar will have massive consequences on sugar farmers. The Consumer Goods Council has raised concerns regarding the sugar tax impacts and highlighted unintended consequences of job losses within the agricultural sector.

Considering South Africa is coming out of a Covid pandemic which had dire effects on jobs and economic growth, it is worrisome that they seek to increase the costs of 100% fruit juices and risk even more shedding of jobs.

In previous years, government has taxed sugar with the aim to improve health outcomes. However, there is little evidence that the taxes earned from this has gone towards improving health outcomes such as programmes to educate the population on preventative strategies in order to live a longer healthier life.

To date, the Health Committee has failed to produce a report that demonstrates how tax levied has addressed health challenges, such as diabetes and obesity in South Africa.

Government should establish clear regulations and preventive health strategies. There is a need for the following:

Watertight policies for reducing the consumption of unhealthy foods;

Clear statistics on the current state of health of the country; and

An audit report on the effectiveness of government strategies aimed at improving health outcomes

As much as there is a need to incentives a healthier lifestyle and encourage companies to reduce the amounts of sugars in their products, we cannot make healthy items with natural sugars such as 100% fruit juice unaffordable. South Africans are already struggling with high prices across the board.

Issued by Michele Clarke, DA Shadow Minister of Health, 14 March 2022