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Sugar addicts, take note: you may be peeved at being forced to pay more for your sweetened drinks, courtesy of Finance Minister Pravin Gordhan’s new budget, but scientists say you will be grateful in the long run.
A tax on sugar-sweetened beverages – including fizzy drinks, fruit juices, cordials and energy drinks – will not only save South Africans billions of rands in health-related costs, but will reduce the number of obese people by 250 000 in three years, say experts.
But that is not all.
A reduction in the rate of obesity among South Africans would also lighten the burden of lifestyle diseases such as diabetes, heart disease and high blood pressure on the country’s health system, said Wits University public health professor Karen Hofman.
“The system is under severe strain because of the burgeoning onset of these diseases, brought on by a rapidly increasing number of overweight or obese citizens,” she said.
“If nothing is done now, obesity will spiral out of control and we will have 250 000 more people who are obese or overweight within three years.
“The consequence of this would be a significant increase in the number of people suffering from non-communicable [or chronic] diseases.”
Analysis conducted by Hofman, which was published in the SA Medical Journal last year, showed that South Africa lost $1.88 billion (R29 billion) between 2009 and 2015, thanks to these diseases.
Her analysis also showed that obese workers cost their employers 49% more in paid time off than their slimmer colleagues.
This week, Hofman applauded Gordhan’s announcement about imposing a sugar tax on sweetened drinks from April next year: “It will make people think twice before buying such drinks.”
Although the finance minister did not say how much the tax would be, experts believe it will amount to about 20% of the current selling prices – as proposed by various academic studies on the issue.
Hofman said while the sugar tax would not be a magic wand, “we anticipate that it will nudge people to make healthier choices, like it has done in Mexico”.
Dr Bobby Ramasia, principal executive officer of the Bonitas medical scheme, agreed. “The tax will hopefully discourage people from consuming beverages bereft of any nutritional value and, in fact, harmful over a period of time,” he said.
Mexico introduced a 10% sugar tax on sweetened beverages in January 2014 in a bid to curb its enormous obesity problem. A study published in the British Medical Journal last year found that soft drink sales in that country fell by 12% in the first half of 2014.
A tax on sugary drinks is also in effect in Norway, but Denmark is considering abolishing the tax to create jobs and aid the economy.
While Mexico is yet to witness the full effect of the sugar tax, Mapule Ncwana, executive director of the Beverage Association of SA, said South Africa should not be taking this route because “there is no evidence that this approach works”.
“We have seen how this approach has failed in Mexico. Consumers continue to buy sodas, and tax revenues have gone as a result, indicating a failure of this approach.
“If you want to address consumer behaviour, don’t slap them with taxes. We agree that tax has a role to play, but we need to educate consumers rather than punish them with increasing taxes,” Ncwana said.
Hofman disagreed: “This tax will surely send a very strong message and hopefully deter people.”
She explained that fizzy drinks, fruit juices and energy drinks contain high amounts of sugar – some as many as 11 teaspoons in a 330ml can.
“This high-sugar content contributes to obesity. There is a strong association between obesity and lifestyle diseases, especially diabetes, which leads to amputation, blindness and kidney failure,” she said.
“About 2 million South Africans are already suffering from either diabetes type 1 or 2, and a further 5 million are estimated to be living with the disease without knowing it. The majority of the type 2 diabetes cases [which occur later in life] have been linked to obesity,” she said.
Hofman stressed that while government was taking the initiative to curb obesity and reduce the burden, citizens must play their part.
“We cannot afford to let sugar-sweetened beverages be our choice drink,” she said. “We know the damage these drinks do to the body.”
Ramasia agreed: “This cannot be overemphasised. Since we all know the risk factors, the challenge is to act collectively to reverse this trend.
“While we expect the state to lead the way, we all have a role to play,” he said.
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