SA Canegrowers states the announcement on Monday by Finance Minister Enoch Godongwana of a 12-thirty day period delay in the sugar tax increase delivers a welcome reprieve for South Africa’s modest-scale growers.

The maximize, which was due to appear into influence on Monday, was established to see the sugar tax surge from 2.21 to 2.31 cents per gram of sugar as declared by the minister in his Spending plan Speech in February.

The affiliation suggests the improve would have exacerbated the worries the market previously faces as a consequence of mounting enter expenses. Not only is the recent diesel gasoline rate 40% previously mentioned that of March 2021, it is anticipated to soar even higher, even though the expense of fertiliser has improved extra than 160% when compared with past yr.

“While [the] announcement presents some shorter-term aid to growers, it is essential that federal government focuses on examining the long-term implications of keeping the tax in position,” the affiliation claimed in a assertion.

“SA Canegrowers will consequently proceed to interact federal government in this regard and will continue calling for further more analysis into the effect of the tax on obesity concentrations as very well as on employment and income from 2018 to day.”

In accordance to the association, the initially yr of the sugar tax (2018) price the region far more than 16 000 jobs and R2.05 billion, even with govt failing to deliver any evidence (to date) that it has had any impression on lessening being overweight.


“Modelling commissioned by SA Canegrowers with the Bureau for Food items and Agricultural Policy shows that keeping the sugar tax at the present amount will continue to cost the market a even further 15 984 seasonal and long-lasting positions and will be a significant contributing aspect towards a decrease of 46 600 hectares of region underneath cane about the up coming ten several years,” SA Canegrowers extra.

“However, there would have been even additional job and profits losses if the prepared enhance had gone in advance nowadays (Monday).”

Palesa Mofokeng is a Moneyweb intern.


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