Glaring omission in Godongwana’s mid-term budget policy statement.
- Health Promotion Levy
- Press Releases
The Healthy Living Alliance (HEALA) is profoundly disappointed by the lack of mention of the Health Promotion Levy (HPL) in Finance Minister Enoch Godongwana’s mid-term budget policy statement.
The South African government imposes taxes on certain products, such as alcohol and tobacco, to generate revenue and discourage consumption due to their negative health and societal impacts. Similarly, HPL aims to reduce the consumption of sugary drinks. However, unlike “sin taxes,” the HPL hasn’t seen a significant increase since its introduction in 2018, representing a potential missed opportunity for revenue.
The World Health Organisation has highlighted the importance of health taxes, noting that health taxes are a valuable tool for reducing disease burden and generating revenue. By implementing or increasing these taxes, governments can improve public health outcomes while securing funds for healthcare initiatives.
South Africa is facing a dramatic increase in non-communicable diseases such as heart disease and diabetes. The overconsumption of sugary drinks has been linked to an increase risk of these illnesses.
These taxes offer multiple benefits, including improved health outcomes, reduced consumption of harmful products, and increased revenue for healthcare. They can also be used to fund specific health initiatives, such as universal health coverage, increases in the child support grant and the expansion of the National School Nutrition Programme.
It is unconscionable that the sugar industry continues to be coddled by the government, while calls for an increase in the HPL to protect the lives of South Africans go unheeded.
HEALA is calling for an increase to the HPL and the recognition of the levy as a necessary health tax for the good of all who live in South Africa.
Ends.
For media enquiries please contact
Zukiswa Zimela HEALA Communications Manager
zukiswa[@]heala.org 0745210651