Coca-Cola Beverages Africa chairperson, Phil Gutsche, said the proposed tax would threaten thousands of livelihoods and economic growth in the province and the city. If this tax proceeds, we stand to lose 60,000 jobs in our industry.
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The Beverage Association of South Africa said that many of those jobs on the line are amongst small spaza owners and vendors in the informal sector.
Meant to help reduce excessive sugar intake in South Africa, a tax on foods high in sugar is seen by the Government as an effective strategy to address diet-related diseases.
“The regressive nature of this tax is that the poor simply pay more”, said BEVSA executive director, Mapule Ncanywa. Sub-Sahara’s most industrialised economy also has its most overweight population, the figures show. If the industry continues to gather pace, the contribution to tax receipts will quickly outpace expected revenues from the SSB tax, says the body.
CCBA was formed through a combination of SABMiller and Coca-Cola African soft drink operations. The tax is due to come into effect in April 2017.
He added that the poor will carry a disproportionate burden from the sugar tax, but benefit from only a small reduction in calories.
The sugar tax was proposed by the National Treasury during budget hearings in February.
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Little Green Beverages director, Glenn Sheppard, said this meant that they would have to reconsider a significant investment in the extension of their Buffalo City plant, which would have added an additional 70 direct jobs, and that they would have to cut back marketing spend nationally by approximately R50 million. Today the long-awaited plan was published and it details the government’s strategy for tackling obesity in kids as almost a third of children aged two to 15 are overweight or obese and younger generations are becoming obese at earlier ages and staying obese for longer.
