In advance of Finance Minister Tito Mboweni’s annual budget presentation on 24 February, health specialists have been calling for an increase in the health promotion levy from 11% to 20%.
The health promotion levy (or ‘sugar tax’) was put into effect in April 2018, and imposes an 11% tax on sugar sweetened beverages. Specialists called for an increase in this tax on Tuesday at a webinar rub by the Healthy Living Alliance (Heala), saying that this was a prudent time to do it because the health sector is currently battling the COVID pandemic.
Most people hospitalised with COVID in SA have comorbidities such as diabetes and hypertension, said Karen Hofman, director of the Wits Centre for Health Economics and Decision Science (Priceless SA). Sugar, especially in liquid form, is a risk factor for obesity, diabetes, hypertension, cardiovascular disease, a number of common cancers and dental decay. She added that had those comorbidities had been prevented, the country could have been in a much better position.
Hofman said that people think they have “control over what [they] are eating and drinking”, but in fact don’t, having been heavily influenced by their environment from an early age. For the tax to have any effect, it should be increased to 20%, based on the World Health Organization and other health experts’ recommendations.
Heala head, Lawrence Mbalati, said the sugar tax had created R5.4-billion for the government within its first two years. This would have been enough to finance South Africa’s downpayment for COVID vaccines from the Covax facility almost 20 times over, in spite of its minimal contribution to the overall budget.
A doubling of the sugar tax would net an additional R2 billion to help fight COVID, Mbalati said.
“This is a watershed moment for the country,” Mbalati continued. “Government revenues are under immense pressure and funding the fight against Covid-19, including vaccines, remains critical.”
Hofman said that research in other countries with a sugar tax had shown a fall in volume of taxable beverages by 51%, and a 29% reduction in sugar intake.
“SA must address commercially driven epidemics with taxes, mandatory food labelling and mandatory comprehensive marketing bans,” Hofman said.
Source: Mail & Guardian
