A stealth tax, not a health tax

The cash-strapped South African government needs to bring in more revenue but is reluctant overtly to raise the VAT rate, which would unleash a political storm. Instead, it is planning to raise some R10.5bn – half of what an increase in the VAT rate from 14% to 15% would yield – by introducing a 20% tax on sugar-sweetened beverages (SSBs). This report was released in Johannesburg in September 2016.
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You are here: Home Reports & Publications Occasional Reports A stealth tax, not a health tax

A stealth tax, not a health tax

The cash-strapped South African government needs to bring in more revenue but is reluctant overtly to raise the VAT rate, which would unleash a political storm. Instead, it is planning to raise some R10.5bn – half of what an increase in the VAT rate from 14% to 15% would yield – by introducing a 20% tax on sugar-sweetened beverages (SSBs). This report was released in Johannesburg in September 2016.

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