Sugar cane growers call for sugar tax to be scrapped

Industry association the South African Canegrowers has called on Finance Minister Enoch Godongwana to scrap the Health Promotion Levy (HPL) – also called the sugar tax – to enable the Sugar Industry Value Chain Masterplan to succeed. In June 2021, a study commissioned by the the National Economic Development and Labour Council (Nedlac) showed that, in the first year of its implementation, the sugar tax contributed to 16 621 jobs losses, a R653-million decline in investment into the economy, and a R1.19-billion decline in the sugar industry’s contribution to the South Africa’s gross domestic product. Cumulatively, the tax cost South Africa more than R2-billion, the association said on November 10.

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