SA Canegrowers hails 12-month delay in sugar tax increase
SA Canegrowers suggests the announcement on Monday by Finance Minister Enoch Godongwana of a 12-month hold off in the sugar tax raise offers a welcome reprieve for South Africa’s modest-scale growers.
The maximize, which was due to occur into impact on Monday, was set to see the sugar tax surge from 2.21 to 2.31 cents per gram of sugar as declared by the minister in his Finances Speech in February.
The affiliation states the improve would have exacerbated the issues the business by now faces as a outcome of rising input prices. Not only is the existing diesel gas rate 40% higher than that of March 2021, it is expected to soar even bigger, while the value of fertiliser has improved a lot more than 160% in contrast with very last calendar year.
“While [the] announcement presents some small-term relief to growers, it is vital that federal government focuses on assessing the extensive-time period implications of keeping the tax in place,” the association mentioned in a statement.
“SA Canegrowers will as a result keep on to engage govt in this regard and will proceed calling for further more exploration into the effect of the tax on obesity levels as very well as on positions and earnings from 2018 to day.”
According to the affiliation, the initially calendar year of the sugar tax (2018) price the country far more than 16 000 work opportunities and R2.05 billion, despite governing administration failing to deliver any evidence (to day) that it has had any affect on decreasing obesity.
Browse:
“Modelling commissioned by SA Canegrowers with the Bureau for Food stuff and Agricultural Plan exhibits that keeping the sugar tax at the latest degree will nevertheless expense the industry a further more 15 984 seasonal and permanent work opportunities and will be a important contributing element towards a decrease of 46 600 hectares of space below cane over the upcoming ten a long time,” SA Canegrowers extra.
“However, there would have been even even further position and earnings losses if the prepared enhance had long gone in advance now (Monday).”
Palesa Mofokeng is a Moneyweb intern.