SA Canegrowers hails 12-month delay in sugar tax increase

SA Canegrowers claims the announcement on Monday by Finance Minister Enoch Godongwana of a 12-thirty day period delay in the sugar tax improve delivers a welcome reprieve for South Africa’s modest-scale growers.

The enhance, which was owing to appear into outcome on Monday, was set to see the sugar tax surge from 2.21 to 2.31 cents for every gram of sugar as introduced by the minister in his Budget Speech in February.

The association states the boost would have exacerbated the troubles the market currently faces as a result of soaring enter fees. Not only is the existing diesel gas selling price 40% earlier mentioned that of March 2021, it is envisioned to soar even larger, though the price tag of fertiliser has amplified a lot more than 160% in comparison with very last year.

“While [the] announcement gives some quick-term relief to growers, it is critical that government focuses on evaluating the prolonged-term implications of preserving the tax in area,” the affiliation reported in a statement.

“SA Canegrowers will for that reason continue on to interact federal government in this regard and will continue calling for additional analysis into the impression of the tax on obesity degrees as well as on work opportunities and earnings from 2018 to date.”

According to the affiliation, the initial yr of the sugar tax (2018) expense the region additional than 16 000 work and R2.05 billion, even with authorities failing to deliver any proof (to date) that it has had any impression on reducing being overweight.

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“Modelling commissioned by SA Canegrowers with the Bureau for Meals and Agricultural Coverage shows that maintaining the sugar tax at the recent degree will continue to cost the market a further more 15 984 seasonal and everlasting careers and will be a key contributing element toward a decrease of 46 600 hectares of region below cane more than the upcoming ten many years,” SA Canegrowers included.

“However, there would have been even further more position and profits losses if the prepared maximize had absent in advance these days (Monday).”

Palesa Mofokeng is a Moneyweb intern.