Sugar tax might flatten revenue

File: There are warnings that the sugar tax proposed by the government will have a negative effect on the soft drinks industry. 

JOHANNESBURG - Research by consultancy Oxford Economics reveals that theproposed 20 percent sugar tax might generate far less income than estimated.

The soft drink industry’s contribution to GDP could reduce by R14.6-billion, with between 60,000  and 70,000 job losses in the industry, according to research by the Oxford Economics consultancy.

The company has released a research report titled "The Economic Impact of Taxation of Sugar Sweetened Beverages in South Africa", commissioned by the Beverage Association of South Africa.

READ: Fat chance sugar tax will work: experts

The report  states that in the informal sector, for example spaza shops, an estimated 13 thousand jobs could be affected.

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