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-month hold off in the sugar tax increase provides a welcome reprieve for South Africa’s modest-scale growers.
The maximize, which was because of to arrive into outcome on Monday, was set to see the sugar tax surge from 2.21 to 2.31 cents for each gram of sugar as introduced by the minister in his Spending plan Speech in February.
The association states the boost would have exacerbated the problems the sector currently faces as a consequence of rising input fees. Not only is the current diesel gasoline rate 40% previously mentioned that of March 2021, it is expected to soar even bigger, when the price tag of fertiliser has amplified much more than 160% when compared with final yr.
“While [the] announcement supplies some short-expression relief to growers, it is critical that authorities focuses on evaluating the extended-term implications of trying to keep the tax in location,” the affiliation reported in a statement.
“SA Canegrowers will as a result continue to interact federal government in this regard and will carry on calling for further investigation into the impression of the tax on weight problems ranges as perfectly as on work opportunities and earnings from 2018 to day.”
According to the association, the 1st 12 months of the sugar tax (2018) value the region additional than 16 000 work and R2.05 billion, inspite of govt failing to create any proof (to day) that it has experienced any effects on decreasing weight problems.
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“Modelling commissioned by SA Canegrowers with the Bureau for Food and Agricultural Plan demonstrates that sustaining the sugar tax at the latest stage will still cost the market a further more 15 984 seasonal and long-lasting employment and will be a big contributing factor towards a drop of 46 600 hectares of location beneath cane over the up coming 10 many years,” SA Canegrowers added.
“However, there would have been even more position and earnings losses if the prepared improve had gone ahead these days (Monday).”
Palesa Mofokeng is a Moneyweb intern.
