It was recently announced that South Africa’s Health Promotion Levy (HPL) on sugary beverages was to be extended to pure juice. The South African government is expected to publish a discussion paper on the levy soon. This is intended to aid consultation on the proposals to extend the levy to pure fruit juices and lower the four-gram threshold. This means that after public consultation, a levy may be charged on 100% juice. The main objective of the sugary beverage levy, as stipulated by South Africa’s HPL policy, is to decrease incidents of diabetes and obesity. However, it has had a negative impact on the South African sugar industry, with thousands of jobs lost since the tax was implemented.
Source Baker & McKenzie
