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Taxing Sugary Drinks by 20% Could Save Lives and Cut Healthcare Costs in South Africa


Food and Beverages

Taxing Sugary Drinks Saves Lives & Cuts Healthcare Costs in SA

Every year, non-communicable illnesses including diabetes, high blood pressure, and heart problems cause more than 70% of fatalities worldwide.

Non-communicable illnesses account for almost half of all fatalities in South Africa. After TB, diabetes is the second most common cause. The widespread use of sugar-sweetened beverages, such as cold drinks, is a significant factor in the rise in diabetes incidence.

A tax of at least 20% on sugar-filled beverages is advised by the World Health Organization as a practical way to assist lower consumption and the associated health hazards. In 2018, South Africa implemented the Health Promotion Levy, a levy on drinks with added sugar.

After the 4g/100ml barrier, the tax is applied at R0.0221 ($0.0012) per gram of sugar, which is equivalent to 8% of the total selling price. Since its introduction, the tax has gone up a little, but not enough to keep up with inflation. As a result of corporate lobbying, the Health Promotion Levy was diluted, falling short of the initial 20% goal.

The health and financial effects of not enacting the Health Promotion Levy at the suggested 20% are still being assessed by PRICELESS SA. This problem is made worse by a dearth of recent data. However, it is important to note that obesity remains a serious issue in South Africa, according to the World Obesity Report.

By 2035, it is anticipated that 10 million children and 30 million people in South Africa would suffer from obesity if nothing is done. Obesity-related non-communicable illnesses accounted for 55,238 fatalities in South Africa in 2019, and as obesity rates rise by 2.3% year, more deaths will occur.


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