SA Canegrowers hails 12-month delay in sugar tax increase
SA Canegrowers claims the announcement on Monday by Finance Minister Enoch Godongwana of a 12-month delay in the sugar tax maximize gives a welcome reprieve for South Africa’s tiny-scale growers.
The improve, which was due to come into outcome on Monday, was established to see the sugar tax surge from 2.21 to 2.31 cents per gram of sugar as introduced by the minister in his Budget Speech in February.
The association states the boost would have exacerbated the troubles the marketplace already faces as a end result of rising input fees. Not only is the existing diesel gas price 40% above that of March 2021, it is envisioned to soar even larger, whilst the price tag of fertiliser has increased additional than 160% in contrast with final yr.
“While [the] announcement offers some quick-time period aid to growers, it is critical that govt focuses on assessing the long-expression implications of maintaining the tax in location,” the association claimed in a statement.
“SA Canegrowers will therefore keep on to interact governing administration in this regard and will proceed contacting for more analysis into the effect of the tax on weight problems amounts as nicely as on employment and earnings from 2018 to day.”
In accordance to the affiliation, the very first calendar year of the sugar tax (2018) price tag the nation extra than 16 000 employment and R2.05 billion, in spite of government failing to make any proof (to day) that it has experienced any influence on decreasing obesity.
“Modelling commissioned by SA Canegrowers with the Bureau for Meals and Agricultural Coverage demonstrates that retaining the sugar tax at the recent stage will even now cost the market a more 15 984 seasonal and lasting positions and will be a major contributing component to a decrease of 46 600 hectares of region below cane over the future ten a long time,” SA Canegrowers added.
“However, there would have been even even further occupation and income losses if the planned raise experienced gone forward right now (Monday).”
Palesa Mofokeng is a Moneyweb intern.