Customs Updated:
31 Jul 2017

Tariff Book (S1 P1)
Sugary beverages levy - Comment due

In last week’s column, comment was invited by 31 January 2019 on the South African Revenue Service (SARS) draft Rule amendment and the DA forms to the Customs and Excise Act, 1964 for the “Health Promotion Levy on Sugary Beverages”.

On 14 January 2019, SARS invited comment on Part 7A of Schedule No.1 to the Act, 1964, “Health Promotion Levy on Sugary Beverages”, on which comment is due by 28 January 2019.

The proposed amendments relate to Note 5, to include the reference to grams per 100 millilitres, and to Note 6 to indicate how the sugar content of powders and concentrates or other preparations for the making of sugar beverages will be calculated.

 

Note 5 and 6 in Section A to Part 7 of Schedule No 1 to the Act, 1964 reads as follows:

“5. The sugar content of sugary beverages liable to the levy on sugary beverages must be calculated in grams per 100 millilitres based on -

(a) the sugar content as certified on a test report obtained and retained from a testing laboratory accredited with and using methodology recognised by the South African National Accreditation System (SANAS) or the International Laboratory Accreditation Cooperation (ILAC); or 

(b) the sugar content of the sugary beverage will be assumed to constitute 20 grams per 100 millilitres.”

6. In the case of powder and liquid concentrates or other preparations for the making of beverages, the sugar content must be calculated in grams per 100 millilitres based on - 

(a) the sugar content as certified on a test report as contemplated in paragraph 5(a) above of the total volume of the prepared beverage when mixed or diluted according to the manufacturer’s product specifications; and

(b) the average of all the certified sugar contents referred to in item (a) above for all the prepared beverage options when mixed or diluted according to the manufacturer’s multiple product specifications; or

(c) the sugar content of the prepared beverage will be deemed to constitute 20 grams per 100 millilitres should the concentrate or preparation be mixed or diluted at a ratio of one part to nine parts water.”