Parliament passes bill on sugary drinks tax
CAPE TOWN - The National Council of Provinces (NCOP) has today passed the tax on sugary drinks, as part of the Rates and Monetary Amounts and Revenue Law Amendment Bill.
In the wake of 18 months of negotiations on the tax including four public hearings and a negotiation process in Nedlac, an agreement has finally been reached.
The fourth vote by the NCOP today follows previous votes by the Standing Committee, National Assembly and Select Committee of Finance.
"We are very excited and happy that the MPs are prioritising health in South Africa", said coordinator of Healthy Living Alliance (HEALA), Tracey Malawana.
South Africa joins 30 countries worldwide to tax sugary drinks, including Portugal, India, Saudi Arabia and Thailand who have passed similar taxes this year.
The tax, expected to be implemented in April 2018 will see the price of Coca Cola increase by a sharp 11%.
Initially, Treasury proposed a tax of approximately 20% on a can of Coca Cola. However, the current tax will impose 2,1 cents per gram of sugar on all sweetened drinks, with the first 4g of sugar per 100ml exempt as an incentive to encourage industry to reformulate its drinks to reduce their sugar content, says HEALA.
- BUSINESS REPORT ONLINE