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Shifting sweetness: impacts of South Africa's Health Promotion Levy on sugar-sweetened beverages

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  • Tim Cejka
  • Marlies Piek
  • Mazhar Waseem

Abstract

Sin taxes are increasingly being used to discourage the consumption of goods perceived to harm individuals and society. This paper examines the impact of South Africa's Health Promotion Levy (HPL)—the first sugar tax implemented in Africa—on the consumption of sugar-sweetened beverages (SSBs) in the country. Using comprehensive data from excise returns submitted by manufacturers and importers of SSBs, we find that the HPL was extremely effective in reducing the consumption of sugar through these beverages.

Suggested Citation

  • Tim Cejka & Marlies Piek & Mazhar Waseem, 2025. "Shifting sweetness: impacts of South Africa's Health Promotion Levy on sugar-sweetened beverages," WIDER Working Paper Series wp-2025-21, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-21
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2025-21-impacts-South-Africas-health-promotion-levy-sugar-sweetened-beverages.pdf
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    References listed on IDEAS

    as
    1. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
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    Keywords

    Tax; Commodities; Taxation; Health; Promotion;
    All these keywords.

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