Non-communicable diseases are killing more and more people in South Africa yet the government missed out on raising a total of more than R15 billion for prevention efforts, argues Dr Evelyn Thsehla.
National Treasury's initial proposal was to introduce a tax equivalent to 20% of the price of a liter of the most consumed sugar sweetened beverages. However, the health promotion levy was introduced at an equivalent of 10% of the price of a liter or a rate of 2.21 cents per gram of sugar, with the first 4g/100 ml exempted from the tax.
While the health promotion levy and other health related taxes such as tobacco and alcohol are not ringfenced in South Africa, there are advantages of earmarking such taxes. Governments may earmark tax revenue for priority areas such as chronic disease prevention. The National Department of Health has obesity and NCD prevention strategies which are funded with money from National Treasury. Implementation of the obesity prevention strategy, which is expected to cost about R1.