South Africa's sugar tax to cost thousands of jobs

South Africa’s proposed sugar cost could lead to the loss of thousands of jobs and closures of several businesses.

According to the chairman of Coca-Cola Beverages Africa, about 60,000 jobs could be lost due to the proposed tax on sugary beverages.

The sugar tax was proposed by the National Treasury during budget hearings in February.

Finance Minister Pravin Gordhan had announced that sugar tax will be levied from April next year.

The proposed tax is part of government strategy to reduce obesity and diabetes in the country by at least 10 per cent by 2020.

Ranked as one of the most obese nations on the continent, the country is joining a growing list of countries around the world,trying to put a cap on fizzy drinks.

Reuters