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The South African National Treasury has issued a list of questions and answers on the changes to the proposed tax on sugar-sweetened beverages (SSBs) that were introduced in the recently announced 2017-18 Budget.
The effective tax rate has been reduced and a threshold of 4g/100ml has been introduced. Every gram above 4g/100ml will be taxable at 2.1c/gram.
Like the other excise duties and product specific levies in South Africa, the proposed tax on SSBs will be implemented through the Customs and Excise Act, and will be payable on SSBs either imported into or manufactured in South Africa.
The National Treasury pointed out that the tax is intended to have a significant impact on SSB consumption in the country. It emphasized that, "globally, these fiscal measures are increasingly recognized as effective complementary tools to help tackle the obesity epidemic at a population level."
The draft 2017 Rates and Monetary Amounts and Amendment of Revenue Laws Bill published with the Budget contains the draft legislation to implement the tax. This is currently the subject of a consultation that will run until March 31, 2017.
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