Finance Minister Pravin Gordhan has delivered his 2017 budget speech introducing a host of new tax and finance adjustments for 2017.<\/p>\n
While the majority of the budget focused on the implementation of transformation within South Africa’s economy and a renewed focus on growth, Gordhan also gave an update on the status of one of South Africa’s most controversial new taxes – the proposed “sugar” tax.<\/p>\n
According to Gordhan, further consultations were taking place on the tax on sugary beverages and the proposed design was being revised to include both intrinsic and added sugars.<\/p>\n
“Further consultations are currently taking place on the tax on sugary beverages. Arising from these discussions, and working closely with the Department of Health, the proposed design\u00a0has been revised to include both intrinsic and addeds,” said Gordhan.<\/p>\n
The tax will be implemented later this year once<\/strong> details are finalised and the legislation is passed.The proposed carbon tax and its date of implementation will be considered further in\u00a0Parliament this year.<\/p>\n \u201cThe tax will be implemented later this year once details are finalised and the legislation is passed,\u201d Gordhan concluded.<\/p>\n Government originally proposed\u00a0that these drinks be\u00a0taxed at a rate of 2.29 cents\u00a0per gram of sugar, with the idea that drinks with large amounts of added sugar will be more taxed more.<\/p>\n Drinks which contain natural sugars – like unsweetened milk and 100% fruit juice – would not be taxed while sugar-sweetened drinks of which the sugar content is not disclosed on the packaging would be taxed at a fixed sugar level of 50 grams per 330 ml.<\/p>\n According to Gordhan the new tax will now look at both\u00a0intrinsic and added sugars when calculating the tax.<\/p>\nOriginal proposals<\/strong><\/h3>\n
Changes<\/strong><\/h3>\n