The South African Canegrowers Association has welcomed Finance Minister Enoch Godongwana’s decision to leave the Health Promotion Levy (HPL), or sugar tax, unchanged in the 2024 Medium Term Budget Policy Statement.
According to the association, the levy which was introduced in 2018, has had a significant economic impact, costing around 16,000 jobs in its first year alone, particularly affecting sugar-growing regions like Mpumalanga and KwaZulu-Natal.
“The sugar tax is not supported by evidence. Since its introduction, it has not promoted health outcomes in South Africa, but to the contrary, destroyed jobs in areas that could ill afford it,” said SA Canegrowers Chairman Higgins Mdluli. He emphasised the vital role that agricultural jobs play in rural South Africa, where they support poverty reduction and economic stability.
The association argues that any increase in the sugar tax would be devastating for growers who provide crucial employment in rural areas.
“Agricultural jobs are critically important to the stability of South Africa and to making sure that we reduce rural poverty and unemployment,” Mdluli stated, highlighting the tax’s negative impact on job stability in sugar-growing regions.
SA Canegrowers is also calling for greater consultation on the tax’s socio-economic effects and a comprehensive study on the causes of obesity and poor health in South Africa. The organisation urges the government to uphold its commitment to a collaborative Sugar Value Chain Master Plan.
“We look forward to the promised consultation and working with the government to ensure that evidence-based policies that protect jobs and support rural communities are implemented,” Mdluli added.
The association said it aims to work with the government to develop policies that will support the sugar industry while addressing public health concerns without undermining rural economies.
The Mercury