Sugar cane growers have welcomed the finance minister's announcement that a 4.5% increase in the sugar tax will be delayed by a year.
The increase, which would have raised the tax to 2.31c per gram of sugar, was announced in Enoch Godongwana's maiden budget in February.
In a statement on Saturday, industry body SA Canegrowers welcomed Godongwana;s announcement of a 12-month delay in the increase of the health promotion levy, or sugar tax, which was originally proposed to take effect from Friday.
“The delay is a welcome reprieve for SA’s growers, especially small-scale growers,” said the organisation's CEO, Thomas Funke.
“In the first of year of its implementation alone, the sugar tax cost SA more than 16,000 jobs and R2.05bn.”