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25 signatures reached
To: Minister Godongwana, Treasury and DDG Axelson
Godongwana forced to scrap VAT hike. Tell him to increase Sugary Drinks Tax
Good news! The VAT increase has been withdrawn. Minister Godongwana and Treasury have finally felt the pressure and will no longer increase VAT on 1 May 2025, as planned. We all know the VAT hike would have hit low-income homes the hardest and cancelled out most social grant increases. We know that now, more than ever, Treasury has to come up with other alternatives to raise revenue. In his 2025 budget, Minister Godongwana increased allocations for critical public services such as social grants, education, and healthcare. These increases were to be funded by the VAT increase. We cannot allow Treasury and Minister Godongwana to backtrack and scrap these critical increases. Alternatives to raising revenue exist! One of them is increasing the Sugary Drinks Tax.
Why is this important?
Health activists, everyday people, and health experts have gathered year after year to demand an increase on the Sugary Drinks Tax. It’s time that Godongwana and Treasury listen! Every year that Treasury delays increasing the Sugary Drinks Tax to its most effective 20% rate, it chooses to lose R2.7 billion in revenue, money that the country desperately needs. The sugar industry has tried different tactics to delay and scrap the Sugary Drinks Tax. They even went as far as to exaggerate statistics regarding claims that the Sugary Drinks Tax causes job losses, when research from Trade and Industry Policy Strategies found otherwise [1]. We call on Treasury and Minister Godongwana to finally listen to us and increase the Sugary Drinks Tax. You cannot continue to put industry profits before people’s health.
References
[1] Researchers challenge cane growers’ claims that sugar tax killed jobs, by Tamar Kahn for Business Day, 11 June 2024