JOHANNESBURG - The South African Sugar Association (SASA) said on Thursday it was disappointed by the announcement that there will be an increase in the Health Promotion Levy (HPL), commonly known as "sugar tax".
During his budget speech on Thursday, Finance Minister Tito Mboweni said government has decided to hike the sugar tax by 5.2 percent.
Hans Hackmann, SASA chairman, said the sugar tax had already caused serious damage in the sugar industry.
"The HPL has already had a significant impact on the volumes of refined sugar sales in the local market and a consequent increase in the exposure of the sugar industry to the loss-making export market," Hackmann said.
"It is estimated that the impact represents a decline in local demand for sugar of approximately 200,000 tons per annum, reducing industry revenue by approximately R1 billion per annum."