South Africas proposed sugar tax would add 20% to the cost of a 33cl can of regular Coca-Cola

South Africa's proposed sugar tax would add 20% to the cost of a 33cl can of regular Coca-Cola

Coca-Cola Beverages Africa has expressed concerns over meeting merger conditions, should South Africa implement its current sugar tax plan. 

The JV between SABMiller, Coca-Cola Sabco and The Coca-Cola Co began its life as Africa's largest Coca-Cola bottler last month. Anti-trust regulators in South Africa approved the merger in May with several conditions, including a three-year jobs guarantee and ZAR800m (US$54m) to support business development in the country.

In July, South Africa's Treasury proposed a 20% tax on sugary soft drinks to help fight obesity-related diseases. The proposed tax rate is ZAR0.0229 (US$0.0016) per gram of sugar, which would add 20% to the cost of a 33cl can of regular Coca-Cola.

CCBA said in a statement that if the tax were implemented as proposed, "we would have concerns about our ability to meet the merger conditions attached to the recent creation of CCBSA".  

The company continued: "We remain committed to South Africa and will continue our ongoing dialogue with the government about being a good partner for economic growth."

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