SA Canegrowers in South Africa is disappointed over the government’s decision to increase sugar tax and stated that this would lead to the loss of thousands of rural jobs as well as affect the implementation of the Sugarcane Value Chain Masterplan.
Minister Enoch Godongwana in his Budget speech announced that the Health Promotion Levy (HPL or sugar tax) will increase from 2.21 to 2.31 cents per gram.
According to the SA Canegrowers, maintaining the sugar tax at the existing level would lead to the loss of 15,984 seasonal and permanent jobs in the sugar sector and there would be a decline of 46,600 hectares of area under cane cultivation in the next two years.
As per the socio-economic assessment done by NEDLAC, more than 16,000 jobs have been lost due to the sugar tax along with R2,05 billion in 2019.
SA Canegrowers has stated that they are committed to the protection of one million people that support the sugar industry and are required for the success of the Masterplan. They have decided to write to the minister to consider the concerns over the hike in sugar tax and its impact on the people.
