ANCWL weighs in on sugar tax

The ANC Women’s League has added its voice to calls rejecting the tax on sugar-sweetened beverages, saying while this was meant for good in dealing with obesity and related diseases, the tax was not a solution to the problem.

This as trade union federation Cosatu yesterday tabled a submission to the standing committee on finance and the portfolio committee on health opposing National Treasury’s move to tax sugar-sweetened beverages.

The league’s secretary-general, Meokgo Matuba, said the implementation of the tax would result in the loss of about 60 000 jobs.

She expressed concern this would add to the strain caused by trade agreements such as the African Growth and Opportunity Act, which contributed to job losses in the chicken industry.

She said the government should not allow a similar situation in any sector as the country could not afford it. The league called for a more comprehensive dialogue on the proposed tax to mitigate its unintended consequences.

Alternative measures should be explored to address obesity and the associated noncommunicable diseases.

“Government must look at other mechanisms, such as instructing sweetened beverages companies to reformulate their products and reduce the sugar content.”

The league expressed fear that there would be job losses in the sugarcane growing sector and the milling industry.

In its submission, Cosatu said while it agreed that the overconsumption of sugar affected many consumers’ health, the job losses emanating from the tax would be devastating to the poor.

Cosatu’s parliamentary coordinator, Matthew Parks, said the federation was equally worried about the likely economic impact of the proposed tax and that it may result in thousands of sugar farm, mill, transport and factory job losses.

“The sugar industry, like so many sectors, is already battling with depressed growth and a stagnant economic climate. One more knock may result in the collapse of the sector.”

Thousands of workers had already lost their jobs in the mining, poultry, retail, banking and agricultural sectors.

“Unemployment has increased to dangerous crisis levels of 35%. Government has shown itself time and again, to be unable to protect and create jobs. Painful examples are the textile, mining and poultry industries.”

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