Health Reporter
The Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, has announced that the Government has ring fenced the revenue generated from the Beverage Sugar Content Tax (BSCT) for therapy and procurement of cancer equipment.
The move is set to go a long way in equipping the country’s referral and district hospitals nationwide as well as promoting a healthy life style.
In a press statement yesterday, Minister Ncube said that by addressing quality of life and health concerns, the BSCT aims to not only mobilise revenue but also channel it towards vital health-related initiatives, to fund therapeutic initiatives and the procurement of essential cancer diagnostic equipment.
“The introduction of the Beverages Sugar Content Tax is aimed at addressing quality of life and health matters through mobilising revenue that would be channelled towards such areas.
“Government has already made a commitment to initially ring-fence the revenue generated from the Beverages Sugar Content Tax for therapy and the procurement of cancer equipment for cancer diagnosis. As a sign of such commitment, the Treasury will be commissioning the machinery purchased therefrom, and subsequent procurements will be advised accordingly,” said Minister Mthuli.
Moreover, the Minister condemned the unwarranted price hikes on certain beverages, attributing them to misinterpretations and profiteering by manufacturers, wholesalers and retailers.
He asserted that the Government possesses a record of prices charged by these operators before the tax's implementation and expressed the need for transparent and justifiable pricing practices.
“Treasury notes the unjustifiable increase of prices for some beverages, which is unreasonably attributed to the impact of the Beverages Sugar Content Tax. Such behaviour by the responsible manufacturers, wholesalers and retailers is a clear demonstration of incorrect and, in some cases, profiteering” he said.
In 2022, the World Health Organisation (WHO) unveiled its inaugural global tax manual targeting sugar-sweetened beverages (SSBs) and revealed that over 85 nations have adopted various forms of SSB taxation.
The WHO manual showcased the success stories of countries that have effectively implemented such taxes, including Mexico, South Africa and the United Kingdom.
According to Dr. Ruediger Krech, Director of Health Promotion at WHO, "Taxes on sugar-sweetened beverages can be a potent instrument for promoting health, as they not only save lives and prevent diseases but also advance health equity and generate revenue for countries, which could be directed towards achieving universal health coverage."
Meanwhile, evidence has exposed that implementing taxes on SSBs increases product prices and reduces demand, resulting in fewer purchases.
A recent Gallup Poll also found that a majority of people across the United States, Tanzania, Jordan, India and Colombia supported taxes on SSBs, alcohol, and tobacco.
