South Africans are now paying more for their favourite fizzy and sugary drinks.
1 April saw a 1 percentage point increase in value-added tax (VAT) and the implementation of the sugar tax.
The so-called sugar tax was created to promote the Department of Health’s aim to reduce the diabetes, obesity and related diseases.
The tax is equivalent to a levy of about 11 percent on can of coke, according to Health-e News.
Health-e News reporter Amy Green explains that Treasury has estimated less than 1 500 job losses as a result of the tax, and not 24 000 as predicted by Beverage Association of South Africa (BevSA).
Green explains that funds from the tax will be directed to health promotion campaigns.
Many have argued that the short term job losses pale in comparison to the cost of treating lifestyle diseases associated with sugar.— Amy Green, Health reporter for Health-e News
A lot more will be revealed in the Health budget speech next month.— Amy Green, Health reporter for Health-e News
The campaign will include a media campaign, with TV and radio adds creating awareness the dangers of sugar specifically.— Amy Green, Health reporter for Health-e News
One sugary drink a day can increase your chances of being overweight by 30% as an adult and by 50% as a child.— Amy Green, Health reporter for Health-e News
Take a listen to her explain:
This article first appeared on CapeTalk : Govt to use new sugar tax funds on health campaigns