Health Minister’s proposed sugar tax will increase food prices and hurt the poor
11 January 2016
While the DA welcomes the Minister of Health, Aaron Motsoaledi’s, plans to reduce obesity by 10% amongst South Africans as the right move to solving a major national problem we believe that increasing the tax on sugar-sweetened beverages by 20% will further increase food prices and hurt the poor who will not be able to afford alternate forms of sugar.
This comes after reports today claiming that government will be campaigning for sugar and fat taxes as set-out in the Department of Health’s (DoH) Strategy for Prevention and Control of Obesity in SA. The DA notes with concern that hiking taxes will only be partially effective in curbing obesity. For example in Mexico – where a 10% sugar tax was introduced – only a 6,4% drop in Coca Cola sales, a 10% decline in sugary beverage consumption and a 7% rise in sales of bottled water and milk was recorded.
With such feeble results, proposed tax hikes will firstly take longer than the intended five years (2015 – 2020) to reduce obesity by 10%, secondly, the poor will have to bear the brunt of higher food prices over the entirety of this extended period.
The DA calls for Minister Motsoaledi to rather focus on both diet and exercise interventions rather than interfering with the already overbearing tax regime. Academic studies have revealed that South African’s have diets that lack fruit and vegetables but high in fat and sugar, as well as that most South Africans living in the rural areas and townships have limited access to facilities to exercise.