SA Canegrowers hails 12-month delay in sugar tax increase

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

The maximize, which was because of to appear into influence on Monday, was set to see the sugar tax surge from 2.21 to 2.31 cents per gram of sugar as introduced by the minister in his Budget Speech in February.

The affiliation says the enhance would have exacerbated the difficulties the marketplace now faces as a result of climbing enter expenditures. Not only is the existing diesel fuel price tag 40% earlier mentioned that of March 2021, it is expected to soar even increased, even though the value of fertiliser has amplified far more than 160% as opposed with previous calendar year.

“While [the] announcement gives some short-time period relief to growers, it is important that government focuses on examining the very long-phrase implications of keeping the tax in area,” the affiliation mentioned in a assertion.

“SA Canegrowers will as a result continue to have interaction governing administration in this regard and will continue contacting for additional research into the impression of the tax on weight problems concentrations as nicely as on jobs and revenue from 2018 to day.”

According to the affiliation, the first 12 months of the sugar tax (2018) value the place more than 16 000 positions and R2.05 billion, inspite of governing administration failing to develop any evidence (to date) that it has had any impression on cutting down being overweight.

Study:

“Modelling commissioned by SA Canegrowers with the Bureau for Foodstuff and Agricultural Policy shows that preserving the sugar tax at the recent stage will continue to value the business a even more 15 984 seasonal and long lasting careers and will be a major contributing element in the direction of a decrease of 46 600 hectares of place under cane in excess of the future 10 years,” SA Canegrowers extra.

“However, there would have been even additional job and income losses if the planned boost experienced long gone forward today (Monday).”

Palesa Mofokeng is a Moneyweb intern.