Here’s What The Proposed Sugar Tax Will Cost You

by | Feb 27, 2017 | Health

By Megan Flemmit; Photography by Stock Snap

For those of you struggling to stick to your new years resolution of giving up fizzy drinks, help is on its way, in the form of the proposed sugar tax. 

Last year Finance Minister Pravin Gordhan announced that government would implement a 20% tax on sugar-sweetened beverages (SSBs). The revenue created from this tax would go towards initiatives that help combat the incidence of diabetes and other non-communicable diseases. During his budget speech on Wednesday, Gordhan announced that the sugar tax would now only be 11%.

How it Works

The tax will be applied to the sugar content found in SSBs. Fizzy drinks which exceed 4g per 100ml will be taxed 2.1cents for every extra gram of sugar. For example, if a 330ml can of cool-drink has 35 grams of sugar in it, 12 grams of this sugar is exempt from tax. The other 23 grams will cost you an extra 48.3 cents per can of cool-drink.

READ MORE: What Exactly Is ‘Sugar Tax’ — And What Does It Mean For Your Waistline?

Concentrated beverages such as Oros, which is diluted with water, will only be subject to 50% of the proposed rate. Fruit juices and milk products are still exempt from tax, although Treasury officials have said that this might change in future.

When will this happen?

This new tax will be administered through the Customs and Excise Act (1964). It will come into effect as soon as the necessary legislation has been approved by Parliament and signed off by the President.

So next time you reach for that sugary drink, you might want to reconsider. Your health and your budget will thank you for it.

Struggling to fight off that sugar belly? Buy our Shrink Your Sugar Belly Volume 2 for some tips to help you win that fight.

Pin It on Pinterest

Share This