Durban – The South African Farmers Development Association (Safda) has welcomed Finance Minister Enoch Godongwana’s announcement in the 2023 Budget speech that the sugar tax will be unchanged for the next two years.
Safda executive chairperson Siyabonga Madlala said this would provide relief to hard-hit sugar cane farmers.
“This is a relief to the sugar industry and, most importantly, to our farmers who have been anxiously waiting on the minister to announce this good news.
“This will enable the industry to pursue various diversification opportunities which will allow the industry to export less sugar and ensure the sustainability of the industry.”
Madlala said in 2018 the Treasury introduced the Health Promotion Levy (HPL) on sugary drinks with more than four grams of sugar per 100ml.
“The rate is currently fixed at 2.1 cents per gram of the sugar content that exceeds four grams per 100ml. This resulted in a decline of South African sugar because the beverage producers reviewed their beverage recipes and formulated away from cane sugar in order to mitigate the magnitude of their tax exposure.”
He said Safda also welcomed the announcement that the government had set aside money for flood relief for farmers.
“We are also pleased by the minister’s announcement in relation to the floods that took place in 2021 and 2022, to make available an amount of R695 million for immediate relief and a further R1 billion to be made available next year.
“We believe that this will assist our farmers as well that were affected by the floods and have not yet received any assistance to fix their infield roads, farmhouses, etc,” Madlala said.
Safda thanked Ministers Thoko Didiza and Ebrahim Patel for their support of the recovery efforts aimed at boosting the struggling sugar sector.
“We hope that this financial relief will assist our farmers to get back to business as some have not been operational due to a lack of assistance.”