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Pure fruit juice may come under sugar tax in South Africa

Staff Writer | October 20, 2016
Pure fruit juice may be added to the list of drinks expected to face a levy under a proposed tax on sugary drinks, South Africa's Treasury has said.
Pravin Gordha
Healthy drinks   Finance Minister Pravin Gordha:
Reuters reports that in his budget speech in February, Finance Minister Pravin Gordhan proposed the tax on sugary drinks to be implemented in April next year, aimed at fighting growing obesity in the continent's most lucrative market for Coca-Cola.

Health campaigners have welcomed the tax, citing obesity in South Africa, where 42 percent of women and 13 percent of men are categorised as obese.

The proposal initially exempted beverages containing natural or intrinsic sugars found in unsweetened milk and milk products and 100 percent pure fruit juices from the 20 percent tax, but officials have recently reconsidered their decision citing similar health risks to drinks with added sugar.

"Many health experts argued that 100 percent fruit juice should also be subject to the tax, as the natural sugar levels it contains have the same or very similar negative health consequences as that of sugar added in soft drinks," the National Treasury said in an emailed response to Reuters.

Chairman of the South African Fruit Juice Association, Johan de Kock, said the big difference between fruit juices and some of the other beverages is that fruit juices contain a lot of nutritional value in vitamins and minerals.

"We believe the health benefits of 100 percent fruit juice outweighs the fruit sugar that it contains," de Kock said, adding that his group had not been formally informed about the tax on pure fruit juice.

The Treasury said it will debate the proposed tax, including the inclusion of pure fruit juice, during a meeting in November.

If the proposed law is passed, South Africa will join Mexico, France and Hungary in introducing taxes on sugary drinks to fight obesity. Britain also plans to launch the tax.


 

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