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COSATU Submission on the Proposed Sugar Sweetened Beverage Tax 14 February 2017

This submission by COSATU addresses the health objectives of the proposed Sugar Sweetened Beverage Tax, the potential job losses in various sectors, concerns regarding the tax implementation, and proposes a way forward.

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COSATU Submission on the Proposed Sugar Sweetened Beverage Tax 14 February 2017

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  1. COSATU Submission on the Proposed Sugar Sweetened Beverage Tax14 February 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 72 000; • Lack of government plan to save jobs; and • Post 1994 agriculture, mining, textile, Telkom and Post Office job losses.

  5. Job losses • 2016 mining, retail and banking losses; • 2017 poultry and mining job losses; • Abandoned manifesto job targets; • EPWP and CWP job opportunities; and • Lack of alternative jobs for sugar sector.

  6. 100% Fruit Juice and Milk • 100% natural fruit juice and milk exemption; and • Impact of removing exemption.

  7. Proposed SSB Tax • Over taxation and water hikes; 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 1 April 2017 implementation; and • Tax to balance budget shortfall.

  9. Further Concerns • Absence of DTI, DAFF and EDD; • Lack of engagement with sector; and • Absence of Nedlac engagement.

  10. Proposed Way Forward • Further meaningful engagements at Parliament and Nedlac; • Suspend 1 April 2017 SSB tax implementation; • Inclusive win-win plan with transitional support, realistic time frames and no retrenchments; and • Future SSB tax ring fenced for transition and healthcare.

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