Finance · South Africa
Health Groups Push for Higher Sugar Tax in South Africa's 2026 Budget
Moneyweb · 2026/01/22
Summary
The health lobby in South Africa is calling for a higher sugar tax in the upcoming 2026 budget. This move aims to reduce sugar consumption, which is linked to rising health problems like obesity and diabetes. Increasing the sugar tax is seen as a way to encourage healthier choices among consumers by making sugary drinks and snacks more expensive. The government is also balancing other economic challenges, including the risk employers face with late benefit contributions and concerns about the local car industry's ability to compete with imports made in India. Additionally, issues in the education system remain, with much of the youth pipeline struggling despite high enrollment rates. These factors highlight the government’s complex task of improving public health, supporting industries, and addressing social issues simultaneously in the new budget.
OnABudget takeaway: A higher sugar tax means consumers may pay more for sugary drinks, encouraging healthier habits but impacting budgets. Small businesses in the beverage industry should prepare for changes, while investors may see shifts in market demand.