Fat Tax As An Alternative Tax In South Africa

South Africa, like many other countries, is struggling with raising levels of obesity and the resultant health problems. Furthermore, as elsewhere in the world, this country is experiencing an ever-increasing need for additional fiscal revenue. These problems force governments all over the world to investigate possible solutions to these issues. The aim of this study was to determine whether fat tax can be used as a tool to decrease the rising rate of obesity in South Africa and thus improve the general health of South Africans and to create additional tax revenue. Available literature was compared and critically analyzed in terms of South African conditions in order to determine whether fat tax should be considered as an alternative tax in South Africa. Cultural beliefs that see obesity as a sign of good health and prosperity, as well as the extreme poverty experienced by a large proportion of the populace are factors that make it difficult to compare the findings of studies conducted in the rest of the world to those of South African research. These are aspects that should be considered for further research. Fat tax has potential as an alternative tax in order to bring about behavioural change and create revenue; however, this should be done with careful consideration as to whether the benefits outweigh the cost of its implementation for the South African taxpayer

Fat Tax as an alternative Tax in South Africa

South Africa, like many other countries, is struggling with raising levels of obesity and the resultant health problems. Furthermore, as elsewhere in the world, this country is experiencing an ever-increasing need for additional fiscal revenue. These problems force governments all over the world to investigate possible solutions to these issues. The aim of this study was to determine whether fat tax can be used as a tool to decrease the rising rate of obesity in South Africa and thus improve the general health of South Africans and to create additional tax revenue. Available literature was compared and critically analyzed in terms of South African conditions in order to determine whether fat tax should be considered as an alternative tax in South Africa. Cultural beliefs that see obesity as a sign of good health and prosperity, as well as the extreme poverty experienced by a large proportion of the populace are factors that make it difficult to compare the findings of studies conducted in the rest of the world to those of South African research. These are aspects that should be considered for further research. Fat tax has potential as an alternative tax in order to bring about behavioural change and create revenue; however, this should be done with careful consideration as to whether the benefits outweigh the cost of its implementation for the South African taxpayer.http://journals.cluteonline.com/index.php/IBERam2013ff201

Fat tax as an alternative tax in South Africa

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.Dissertation (MCom)--University of Pretoria, 2012.TaxationUnrestricte