South Africa’s health promotion levy: Excise tax findings and equity potential
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Date
2021Author
Hofman, Karen J.
Stacey, Nicholas
Swart, Elizabeth C.
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In 2016, the South African government proposed a 20% sugar-sweetened beverage
(SSB) tax. Protracted consultations with beverage manufacturers and the sugar
industry followed. This resulted in a lower sugar-based beverage tax, the Health
Promotion Levy (HPL), of approximately 10% coming into effect in April 2018. We
provide a synthesis of findings until April 2021. Studies show that despite the lower
rate, purchases of unhealthy SSBs and sugar intake consumption from SSBs fell.
There were greater reductions in SSB purchases among both lower socioeconomic
groups and in subpopulations with higher SSB consumption. These subpopulations
bear larger burdens from obesity and related diseases, suggesting that this policy
improves health equity.