Johannesburg - South Africa’s soft drink producers are set to introduce sugar-reducing reformulations of their products as National Treasury forges ahead with its new, lower sugar tax.
Small producers of so-called B Brands are, however, still upset after the lower tax was announced in the Budget Review last month. The new version exempts the first 4 grams of sugar per 100ml and taxes the rest at 2.1c per gram.
For a 2-litre bottle of Coca-Cola, the original tax would have been about R4.86 or 35% of the current retail price. The new tax is about R2.77 or 20%.