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-thirty day period hold off in the sugar tax enhance offers a welcome reprieve for South Africa’s small-scale growers.

The boost, which was owing to occur into outcome on Monday, was set to see the sugar tax surge from 2.21 to 2.31 cents for every gram of sugar as declared by the minister in his Spending plan Speech in February.

The association claims the maximize would have exacerbated the worries the field already faces as a end result of mounting enter fees. Not only is the current diesel gasoline selling price 40% previously mentioned that of March 2021, it is expected to soar even higher, though the charge of fertiliser has amplified a lot more than 160% in comparison with past 12 months.

“While [the] announcement provides some shorter-time period reduction to growers, it is crucial that authorities focuses on evaluating the lengthy-expression implications of keeping the tax in position,” the affiliation reported in a assertion.

“SA Canegrowers will consequently go on to interact authorities in this regard and will continue on contacting for further more investigation into the effect of the tax on being overweight levels as nicely as on jobs and earnings from 2018 to date.”

In accordance to the affiliation, the 1st 12 months of the sugar tax (2018) expense the nation far more than 16 000 work and R2.05 billion, regardless of government failing to deliver any evidence (to date) that it has experienced any impression on reducing being overweight.


“Modelling commissioned by SA Canegrowers with the Bureau for Meals and Agricultural Policy shows that sustaining the sugar tax at the latest level will nevertheless charge the field a even more 15 984 seasonal and long lasting careers and will be a main contributing variable to a drop of 46 600 hectares of area beneath cane above the following ten yrs,” SA Canegrowers extra.

“However, there would have been even more work and profits losses if the prepared enhance had long gone ahead currently (Monday).”

Palesa Mofokeng is a Moneyweb intern.


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