South Africa’s Sugar Tax Launched

April 4, 2018 Taxation in South Africa

sugary drink taxPRETORIA – South Africa is tackling its obesity epidemic by targeting sugary drinks.

Over the weekend South Africa’s tax on sugary drinks came into effect, with manufacturers now paying out a fee if their drinks are too sweet.

From April 1st, manufacturers and importers of sugar-sweetened beverages will be liable to pay a levy on the sugar content of the drink.

The levy is only charged if the drink has sugar content in excess of 4 grams of sugar per 100 mls.

The rate of the levy is currently set at ZAR 0.021 per gram, for each gram over the 4g threshold.

The threshold was set at 4g to encourage manufacturers to create low-sugar alternatives.

It is hoped that the new tax will help alleviate the problem of obesity in South Africa, as it is now the country with the highest obesity rate in all of sub-Saharan Africa.

The new tax will apply to all added and intrinsic sugars in drinks, but fruit juices will be exempt from the new charge.