The Health Promotion Levy (HPL), commonly known as the sugar tax, has remained unchanged at 11% since 2022. This tax applies to sugar-sweetened beverages that contain more than 4 grams of sugar per 100ml, and was introduced in 2018 to help combat health issues such as diabetes and obesity, particularly among lower-income households. Evidence suggests that the tax successfully reduced consumption of sugary drinks in these demographics, supporting public health objectives.

Civil society organizations are now urging the Finance Minister, Enoch Godongwana, to significantly increase the HPL to 20%, arguing that this will further reduce sugar consumption and subsequently improve health outcomes across the country. Critics of the current tax structure highlight that the government seems more focused on corporate profits—particularly those of beverage companies like Coca-Cola—over the health of South African citizens. The demand for a tax increase has grown amid escalating diabetes and obesity rates, indicating a persistent public health crisis.

As the Budget speech approaches on February 25th, the question of whether the government will heed these calls is critical. Should the Minister choose not to raise the tax, it could be perceived as a compromise of public health in favor of business interests. Conversely, a tax increase could symbolize a commitment to addressing pressing health concerns, resonating well with the advocacy efforts of civil groups and potentially improving the health landscape in South Africa in the long term.