The infamous 'sugar tax' on sugary beverages will kick in from 1 April and Jerome Brink, of Cliffe Dekker Hofmeyr’s tax and exchange control practice, breaks down the added costs to consumers.
He says after a long consultative process, the original levy proposed has been slightly reduced.
Now, it is essentially 2.1 cents per gram of sugar content that exceeds 4 grams per 100 mils. And your first 4 grams are levy free.— Jerome Brink, of Cliffe Dekker Hofmeyr’s tax and exchange control practice
Put simply, it's give or take it's approximately R1.39 per litre of sugary soda based on some of the studies.— Jerome Brink, of Cliffe Dekker Hofmeyr’s tax and exchange control practice
He says while it is unlikely to make a difference to the wealthier sectors, even a small price increase like this can have a big impact on lower income levels of society.
Take a listen to the breakdown below:
This article first appeared on CapeTalk : Here's how sugar tax will work come 1 April (and it's no April Fool's joke)