Fat tax as an alternative tax in South Africa

Abstract

The so-called ‘fat tax’ has become a controversial topic debated in recent years not only as a means of curbing behaviour that leads to obesity but also because of its potential for revenue creation especially in view of the global economic downturn. Not only has South Africa been found to have the highest rate of adolescent obesity in Africa as well as astoundingly high obesity rates amongst adults, but the economic crisis has not left South Africa unscathed. Furthermore, the new National Health System which is to be introduced will increase the need for additional tax revenues. Therefore, it is necessary to consider whether ‘fat taxes’ should be instituted in South Africa to curb behaviour, or to increase tax revenues, or whether a combination of the two options should be introduced. Very little research has been done on taxing less healthy foods as an alternative source of revenue, or as a means of altering behaviour in South Africa. With the economic downturn, governments in many developed nations have considered or instituted these taxes as an additional source of income. Obesity rates have skyrocketed in many countries and this excise duty has, therefore, also been used to entice people to buy healthy foods. The purpose of this study is to determine whether ‘fat taxes’ should be considered as an alternative tax in South Africa with regard to behavioural effect and revenue creation, and what other considerations should be taken into account before ‘fat taxes’ can be instituted. This study discussed the potential of ‘fat taxes’ to generate much needed additional tax revenues for the South African government as well as its potential to be used as a tool to decrease the rising rates of South African obesity and thus improve the general health of South Africans.

Die sogenaamde 'vetbelasting' het gedurende die afgelope aantal jare ontwikkel in 'n uiters kontroversiële debat, beide ten opsigte van die moontlikhede wat dit vir vetsug inhou asook die inkomste genererende potensiaal wat dit in die huidige globale ekonomiese insinking kan inhou. Daar is bevind dat Suid-Afrika nie alleen die hoogste adolessente vetsugkoers in Afrika het nie maar ervaar ook in dié verband uitsonderlike hoë koerse onder volwassenes. Die wereldwye ekonomiese krisis het ook nie die Suid-Afrikaanse ekonomie ongeskonde gelaat nie. Die nuwe Nasionale Gesondheidstelsel wat ingestel gaan word sal ook die behoefte aan addisionele belastinginkomste verhoog. Dit is dus noodsaaklik om ondersoek in te stel na die vraag of 'n ‘vetbelasting’ nie in Suid-Afrika oorweeg moet word om ongewenste gedragspatrone te verander, of inkomste uit belastings te verhoog nie, of om beide opsies te oorweeg. Uiters min navorsing is in Suid-Afrika gedoen op die heffing van belasting op ongesonde voedsel as 'n alternatiewe inkomstebron of as 'n instrument om gewenste gedragsverandering te weeg te bring. Met die ekonomiese afswaai wat tans ervaar word het verskeie regerings van ontwikkelde lande so 'n belasting ondersoek of ingestel as 'n addisionele bron van inkomste. Vetsugkoerse het in baie lande die hoogte ingeskiet en dié vorm van aksynsbelasting is met sukses aangewend om mense aan te moedig om meer gesonde voedsel te koop. Die doel van hierdie studie is om vas te stel of ‘vetbelasting’ in Suid-Afrika oorweeg moet word as 'n alternatiewe belasting om gedragspatrone te verander, om addisionele inkomste te genereer asook watter ander oorwegings in ag geneem moet word voordat 'n vetbelasting ingestel kan word. Hierdie studie bespreek die potensiaal van 'n ‘vetbelasting’ om dringende addisionele inkomste vir die Suid-Afrikaanse regering te genereer, asook die waarde van ‘vetbelasting’ as 'n instrument om toenemende vetsug in Suid-Afrika te beïnvloed en sodoende die algemene gesondheid in die land te verhoog.