Business
OFM Business Hour: Sugar tax a threat to Agri master plan─── OLEBOGENG MOTSE 14:57 Wed, 26 Oct 2022
The Chief Executive Officer (CEO) of SA Canegrowers, Andrew Russell, tells the OFM Business Hour, that the Health Promotion Levy (HPL) is a threat to the Agriculture and Agro-processing Master Plan (AAMP).
Russell is hoping that government will ensure sustainability in the sugarcane sector by re-evaluating the HPL, also known as the sugar tax. He says whilst the AAMP aims to ensure sustainability in the agri sector, the HPL does the opposite. Russell's sentiments come as Finance Minister, Enoch Godongwana, tables his Medium-Term Budget Policy Statement (MTBPS) in Cape Town on Wednesday, 26 October 2022.
Russell says the tax was introduced in 2018 to reduce obesity levels in South Africa, to reduce the burden of disease on the country’s healthcare system. He, however, maintains that no scientific evidence supports this assertion by the government. When probed about what the solution is to the HPL, the SA Canegrowers CEO says the government needs to consult the industry as well as conduct thorough scientific research into the matter. He stresses that blaming the sugarcane industry alone isn't the answer.
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Background on the Agriculture and Agro-processing Master Plan (AAMP)
In June 2022, the Department of Agriculture, Land Reform and Rural Development (DALRRD) and the National Agricultural Marketing Council (NAMC) presented the Agriculture and Agro-processing Master Plan (AAMP) to parliament. In notes on the Parliament Monitoring Group (PMG) website it is revealed "the Master Plan is a social compact and the first strategic plan to have commodity-specific transformation targets, jobs, exports, investments and growth rates. It focuses on commercial, land reform in rural areas to increase food production, and on farmers’ infrastructure".