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COSATU Submission on Proposed Sugar Sweetened Beverage Tax - Health Objectives, Job Losses, and Proposed Way Forward

COSATU supports government's health objectives in addressing the obesity and diabetes crisis caused by overconsumption of sugar. However, concerns about job losses, lack of alternative jobs, and the need for a balanced approach are raised. The submission proposes exempting 100% natural fruit juice and milk, further research and engagements, ring-fencing the tax, and a comprehensive plan with transitional support. Other proposed solutions include import tariffs, support for emerging farmers, crop transition or diversification support, and industry-wide reduction of sugar content.

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COSATU Submission on Proposed Sugar Sweetened Beverage Tax - Health Objectives, Job Losses, and Proposed Way Forward

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  1. COSATU Submission on the Proposed Sugar Sweetened Beverage Tax31 May 2017

  2. Health Objectives • Welcome Parliamentary hearings and role; • Support government’s health objectives; • Obesity, diabetes etc. crisis; and • Over consumption of sugar.

  3. Health Objectives • Need to promote healthy life styles; and • Other sugar, dietary and health interventions?

  4. Job losses • Treasury 5 000 estimate; • Industry estimates of 5 817 to 17 000 to 72 000 on farms, transport, mills and factories; • 3 000 to 20 000 emerging farmers at risk; • Lack of government jobs plan; and • Lack of alternative jobs for sugar sector.

  5. Job losses • Post 1994 agriculture, mining, textile, Telkom and Post Office job losses. • 2016 mining, retail and banking losses; • 2017 poultry and mining job losses; • Abandoned manifesto job targets; and • EPWP and CWP job opportunities.

  6. 100% Fruit Juice and Milk • 100% natural fruit juice and milk exemption; • Fruit industry in W. Cape and Limpopo; • Further research; and • Further engagements at Nedlac.

  7. Proposed SSB Tax • Over taxation and water hikes; • Wasteful expenditure, corruption and priorities; and • Ring fence SSB tax for sugar transition and later NHI/ DOH.

  8. Further Concerns • Lack of jobs plan; • No transition for sector plans; • Rush by Treasury for 2017 implementation; and • Tax to balance budget shortfall.

  9. Further Concerns • Absence of DTI, DAFF and EDD; • Insufficient engagement with sector; • Incomplete Socio-Economic Impact Assessment Study; and • Nedlac engagement.

  10. Proposed Way Forward • Further meaningful engagements at Parliament and Nedlac; • Collective government SEIAS; • Delay 2017 SSB tax implementation; and • Inclusive win-win plan with transitional support, realistic time frames and no retrenchments.

  11. Proposed Way Forward • Sugar & related products import tariffs; • Support for sugar exports; • Support for emerging sugar farmers; • Crop transition or diversification support; • Spaza shops; and • Bio fuel & cogeneration formalisation;

  12. Proposed Way Forward • SSB tax ring fenced for transition and healthcare; • No retrenchments; • Job creation; • Industry sugar content reduction; • Public and school education; and • Industry healthier drinks plan.

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