Taxing your sweet tooth | KPMG | ZA

Taxing your sweet tooth

Taxing your sweet tooth

In light of the concerns of increasing obesity rates in South Africa and the announcement in the 2016 budget speech of a proposed tax on SSBs (sugar tax) in South Africa; the impact of SSB consumption on public health, consumers and the industry has come into the spotlight. This prompts the question, ‘are sugar taxes an effective way to change consumer behaviour?’

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The prevalence of obesity in South Africa has increased rapidly. Between 2003 and 2012, obesity rates in South Africa increased to 10.6% in men and 39.2% in women. Scientists argue that the rising consumption of sugar-sweetened beverages (SSBs) is a significant contributor to this problem.

In light of the concerns of increasing obesity rates in South Africa and the announcement in the 2016 budget speech of a proposed tax on SSBs (sugar tax) in South Africa; the impact of SSB consumption on public health, consumers and the industry has come into the spotlight. This prompts the question, ‘are sugar taxes an effective way to change consumer behaviour?’

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