As South Africa prepares for its 2026 budget speech, the under-discussed Health Promotion Levy stands out as a proven tool to curb sugar consumption, reduce costly non-communicable diseases and ease pressure on the healthcare system. Allowing the sugary drinks tax to stagnate under industry pressure risks deepening inequality, shifting the burden of preventable illness onto poor communities instead of strengthening prevention and public health.

As South Africa approaches this year’s budget speech (25 February 2026) , much attention is being paid to unemployment, national debt and inequality.

Yet one tax, which has the potential to improve the lives of South Africans, particularly the poorest, receives little attention.

The Health Promotion Levy, commonly called the sugary drinks tax, was introduced in 2018 with a clear objective: reduce excessive sugar consumption with a view to reducing obesity and associated non-communicable diseases (NCDs) like diabetes and hypertension. When the levy was adopted, it worked. A United Nations University World Institute for Development Economics Research study released in 2025 noted that the levy led to an increase of 15% in the consumption of non-taxable sugary drinks.

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This article was published in The Daily Maverick on the 24th of February 2026.