SA canegrowers demand scrapping of sugar tax
South African canegrowers have called for the government to lift the sugar tax or face a collapse in the sugar industry.
The SA Canegrowers Association has made a submission to Treasury, asking Finance Minister Enoch Godongwana to consider the relief in light of Tongaat Hulett going into business rescue.
The sugar tax was imposed as a way to combat high obesity levels in the country.
Chairperson of the association Andrew Russell says there's no evidence to support this claim.
"In this context, it is irrational to increase the tax, even if the future of Tongaat Hullet hangs in the balance. We need Minister Godongwana to not only scrap the increase but to scrap the ineffective tax in its entirety."
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"This will give growers and millers some financial relief even has the industry works to save the one million livelihoods it supports in KwaZulu-Natal and Mpumalanga and throughout the value chain."
In February, Godongwana stated in his budget speech that after three years of no changes the health promotion levy will be increased to R2.31 per gram of sugar.
It was later postponed to April 2023.
Russell says with the current milling crisis, an increase in the sugar tax will be detrimental.
"It has the potential to destroy sugar cane growers on the north coast of KwaZulu-Natal and further disseminate jobs."
