An analysis of the possible success of a tax on sugarsweetened beverages in South Africa

Mabaso, Bandla Sazi

Title: An analysis of the possible success of a tax on sugarsweetened beverages in South Africa
Creator: Mabaso, Bandla Sazi
Subject: Nutrition -- Government policy -- South Africa
Subject: Value-added tax -- South Africa
Subject: Obesity -- South Africa -- Prevention
Subject: Excise tax -- South Africa
Subject: Taxations of articles of consumption -- South Africa
Subject: Tobacco -- Taxation -- South Africa
Subject: Alcohol -- Taxation -- South Africa
Subject: Carbonated beverages -- Taxation -- South Africa
Date Issued: 2019
Date: 2019
Type: text
Type: Thesis
Type: Masters
Type: MCom
Identifier: http://hdl.handle.net/10962/68333
Identifier: vital:29240
Description: The increase in obesity is a global crisis that is prevalent in both the developed and developing economies, including South Africa. It endangers the health and threatens the life of many people. Sugar-sweetened beverages have become the key target in the fight against obesity, in preference to other foodstuffs that contain added sugar, because of the poor nutritional value they contain and harm they cause if consumed excessively. The Minister of Finance announced in the 2016 Budget Speech, that a proposed tax on sugar-sweetened beverages would be introduced in South Africa and would be implemented in April 2017, but the anticipated date is now 1 April 2018. The thesis examined the possible success of this proposed tax in South Africa, using as a benchmark the process followed prior to implementing the tax and the experience of selected foreign countries that have implemented the tax, one country subsequently abolishing it, and another country considering implementing it. Additionally, the research analysed the success of the existing excise taxes levied on tobacco and alcohol in South Africa, in attempting to predict the possible success of the proposed tax. The success of the proposed tax is, however, threatened by the emergence of illegal markets that offer the targeted products inexpensively, particularly if similar restrictions and laws do not exist in bordering countries. The research was carried out by means of the analysis of journal articles, information from the selected countries’ revenue authorities’ websites, National Treasury publications, commentaries by experts and publications by professional organisations and firms. Overall, the proposed tax has been successful in curbing obesity and high sugar intake in other countries. Similarly, the excise taxes on tobacco and alcohol have been successful in reducing the consumption of targeted products in South Africa. These successes have been realized through a collaborated effort and employing a multi-faceted approach, including advertising restrictions. Nevertheless, the proposed tax is popularly criticised for its regressive nature and the potential job losses that are associated with it.
Format: 84 pages
Format: pdf
Publisher: Rhodes University
Publisher: Faculty of Commerce, Accounting
Language: English
Rights: Mabaso, Bandla Sazi

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