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The Consumer Goods Council of South Africa (CGCSA) on Tuesday urged President Cyril Ramaphosa to scrap the sugar tax, as well as suspend the fuel duty and road accident fund levies for the industry amid record levels of load shedding.
In an open letter to President Cyril Ramaphosa — sent on behalf of the CEOs of Shoprite, PepsiCo, Coca-Cola, Tiger Brands, Burger King, British American Tobacco, Walmart-owned Massmart, Steers-owner Famous Brands and others — the CGCSA says that load shedding has “escalated catastrophically” and was crippling businesses.
The CGCSA represents 12 000 businesses, including top manufacturers, retailers and wholesalers.
The open letter, which was signed by CGCSA and Pick n Pay chairperson Gareth Ackerman, said the cost of power generators is unsustainable, and would result in higher prices for already-embattled consumers. “The deterioration of other essential infrastructure – including water, roads, rail, and policing — all make our tasks, and those of thousands of other businesses around the country, even more difficult,” the CGCSA said in the letter. The letter details urgent actions that the government needs to take to assist businesses, including scrapping the so-called sugar tax.
The CGCSA also called for the suspension of the fuel duty and Road Accident Fund levies for the consumer goods businesses and its value chain, “for as long as we suffer regular load shedding”.
The CGCSA said its industry is a “critical sector that should be considered for fuel rebates similar to the mining, agriculture, fisheries and forestry sectors”.
Effective taxes and other incentives were also needed to install localised renewable energy at small and medium scale.
The CGCSA also action was required to ensure that critical infrastructure such as essential food production, medicines and distribution facilities were “not only exempted from load shedding but are prioritised on the safety and security list”. — fin24.
Online Reporter