It appears that South Africans’ preference for all things sweet will see Treasury exceed what it expected to collect in taxes on sugary drinks.
Taxation on locally produced sugary drinks comprises R3.2 billion of this amount – R1.32 billion more than government expected to collect when the so-called sugar tax was introduced in April 2018.This is according to information contained in the latest taxation statistics from Treasury and the SA Revenue Service for the 2019/20 financial year.However, various industry role players say the tax has done little to change consumer behaviour – and is constraining the sugar industry and manufacturers.
The target was adjusted downwards because of the poor economy, VAT repayment backlogs from previous periods, higher tax refunds during the current season and lower company taxes. The greatest proportion of total tax collection – 57.4% – comes from taxation on income and profit. In 2018/19, it made up 58.5% of total tax revenue, but the sum was smaller.
Taxes on income and profit include personal income tax, taxes on companies , interest on outstanding income tax and dividend tax.
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