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Johannesburg - The Beverage Association of South Africa (BevSA) will meet the Treasury to discuss the details of a proposed tax on sugar-sweetened drinks, a top official said on Wednesday.
Fin24 reported that there was speculation an announcement of a sugar tax could follow in the budget speech by Finance Minister Pravin Gordhan.
"This year, in view of the need to raise additional revenue and reduce the budget deficit, we have paid special attention to the fairness and inclusivity of the tax system," stated Gordhan.
Among the tax proposals put on the table by the minister is an "introduction of a tax on sugar-sweetened beverages".
Gordhan said the proposed sugary tax will be implemented in April next year, but did not say how much the levy would be.
BevSA, whose members include Coca Cola, Pepsi and SABMiller, has previously said the tax was "discriminatory" and was bound to fail, according to a statement on their website.
"We are meeting Treasury next week Thursday 21st and only after this meeting will we know the details of the proposed tax," the Executive Director of BevSA Mapule Ncanywa said.
South Africa is one of many countries to impose a tax on sugary drinks to battle obesity and increase revenue. Consuming large amounts of sugar puts people at high risk for lifestyle diseases like diabetes, stroke and obesity.
Britain last month said it will introduce a sugar levy on soft drinks in two years' time to tackle a growing obesity crisis, delighting health campaigners and angering drink makers.
Additional reporting by Fin24
