SA Canegrowers hails 12-month delay in sugar tax increase
SA Canegrowers says the announcement on Monday by Finance Minister Enoch Godongwana of a 12-month hold off in the sugar tax enhance supplies a welcome reprieve for South Africa’s modest-scale growers.
The boost, which was thanks to appear into result on Monday, was established to see the sugar tax surge from 2.21 to 2.31 cents for every gram of sugar as announced by the minister in his Funds Speech in February.
The affiliation suggests the increase would have exacerbated the problems the business now faces as a end result of increasing input fees. Not only is the recent diesel gasoline rate 40% earlier mentioned that of March 2021, it is expected to soar even greater, while the charge of fertiliser has amplified extra than 160% in comparison with past 12 months.
“While [the] announcement supplies some quick-expression relief to growers, it is vital that authorities focuses on evaluating the long-time period implications of retaining the tax in location,” the affiliation stated in a assertion.
“SA Canegrowers will as a result carry on to interact government in this regard and will carry on calling for more research into the influence of the tax on weight problems stages as nicely as on careers and revenue from 2018 to date.”
According to the affiliation, the initially 12 months of the sugar tax (2018) price the place much more than 16 000 work opportunities and R2.05 billion, inspite of government failing to produce any proof (to day) that it has experienced any affect on reducing being overweight.
“Modelling commissioned by SA Canegrowers with the Bureau for Meals and Agricultural Coverage demonstrates that sustaining the sugar tax at the current degree will nevertheless price tag the industry a even more 15 984 seasonal and permanent careers and will be a significant contributing variable in direction of a decline of 46 600 hectares of space beneath cane over the upcoming 10 decades,” SA Canegrowers extra.
“However, there would have been even more job and income losses if the prepared raise had absent forward nowadays (Monday).”
Palesa Mofokeng is a Moneyweb intern.
Supply website link