'Health-promoting' sugar tax won't stop consumers, says tax consultant

Tax consultant David French says the sugar tax will unlikely change in consumption patterns.

The tax came into effect on 1 April, along with the VAT increase, explains French.

Read more: Govt to use new sugar tax funds on health campaigns

However, he does not believe that the tax will be the deterrent that health officials in government had argued.

Consumers are now being taxed at 2.1 cents per gram of the sugar content that exceeds 4 grams per 100ml.

French says the tax appears to be less for health promotion, and more for the benefit of the country's fiscus.

I don't think that it's going to have an impact from a health point of view that people think it should.

David French, Tax Consulting Director at Mazars

From a policy perspective, I don't think it will have the health benefits that it is set out for. It will certainly raise money for the government.

David French, Tax Consulting Director at Mazars

It's not going to change their behaviour.

David French, Tax Consulting Director at Mazars

Take a listen to assessment below:


This article first appeared on CapeTalk : 'Health-promoting' sugar tax won't stop consumers, says tax consultant


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