Dental News - New sugar tax could save South Africa billions in health care costs, experts say

Dental Tribune International

Thu. 19. May 2016

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JOHANNESBURG, South Africa: Calculations by the University of the Witwatersrand suggest that South Africa’s sugar-sweetened beverages tax, which is underway and proposed for implementation in April 2017, could save the country R10 billion (€560 million) in expenditure related to treating Type 2 diabetes over the next 20 years. The fiscal initiative, which was introduced by Finance Minister Pravin Gordhan in his national budget speech in February, is an effort to help reduce excessive sugar intake and curb obesity in the country.

Although Gordhan said that the sugar tax will be implemented in April next year, he has not yet said how high the levy will be. With the measure, South Africa will follow countries such as Denmark, Finland, France, Hungary, Ireland, Mexico and Norway, which all tax sugar-sweetened drinks already.

“Treasury will need to decide on the tax rate and what qualifies to be taxed,” remarked Aviva Tugendhaft, Deputy Director of PRICELESS SA at the university’s School of Public Health. The research programme is one of 26 representatives of the Public Health Community of South Africa that submitted a letter to treasury endorsing the tax plans in April. “The government may decide to institute a flat rate on all beverages, as has been done in Mexico, or consider taxing the caloric content of the drinks,” she said.

Both financial and health benefits resulting from the levy on beverages with added sugar, including soft drinks, fruit juices, energy drinks and vitamin waters, could be extensive, a 2015 study by Wits University has shown. If the tax is implemented at 20 per cent, Wits researchers calculated savings of R10 billion in costs for hospitalisations and medication related to treating rising cases of Type 2 diabetes. Moreover, the analysts estimated that the tax could prevent obesity in about 280,000 young adults.

South Africa has the highest obesity rate in sub-Saharan Africa. According to figures from the World Health Organization, 26.8 per cent of South Africans were obese in 2014. Just last year, the country’s health department released its national strategy on the prevention and control of the condition. It stated that fiscal measures were the most cost-effective ways to combat rising obesity compared with measures such as food labelling, advertising regulations or media campaigns.

Aside from increasing the risk for obesity, various studies have confirmed the direct relation between the intake of dietary sugars and dental caries. Soft drinks and juices are especially harmful to the teeth, since they tend to be very acidic, which makes the teeth particularly vulnerable to both dental decay and tooth erosion.

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