Rules by country / Middle East and Africa / South Africa sugar tax
South Africa sugar tax: what the Health Promotion Levy costs each drink
The Health Promotion Levy charges 2.21 cents for every gram of sugar above the first 4g per 100ml. The rate hasn't risen since 2019, but health groups want it doubled and growers want it scrapped. We work out the cost for every product and how to price for it.
At 2.21 cents per gram of sugar above 4g per 100ml, the rate since 2019.
A sugar tax review for South Africa
What the levy costs each product today and if it rises, and the most profitable response, with a price plan for each retailer.
- The levy on every product, today and if the rate rises
- Pass on, absorb or cut sugar: the most profitable choice for each product, and how sure we are
- The most a recipe change can cost and still pay
- A price plan for each retailer, and an Excel model
How your results look
| Product | Sugar per 100ml | Levy | Our advice |
|---|---|---|---|
| Cola, 330ml can | 10.6g | 48c a can | Pass on in full |
| Lemonade, 2 litres | 7g | R1.33 a bottle | Cut sugar to 4g |
| Juice drink, 1 litre | 4g | No levy | Hold the price |
Fictional products. Every real result comes with the expected sales and profit, and a likely range.
Your options
Every option has a fixed price, agreed before we start.
Sugar tax review
- The levy and best choice for each product
- Price plan for each retailer
- Scenario model and a walk-through
Pricing review with the levy
- Everything in the levy review
- Prices and promotions for the whole range
- How your products take sales from each other
Portfolio review
- Everything in the pricing review
- More retailers and data sources
- A plan for each channel
After the project: a refresh before each pricing round, from £2,000 (about R44,000). Prices are fixed in pounds sterling; amounts in rand are a guide at October 2026 exchange rates. We're based in the UK and work remotely, in English, under NDA.
How it works
From the first call to your plan in about three weeks.
A free 15-minute call
Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.
Your data
Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.
Your plan
The levy on every product, the best choice and a price plan, walked through with your team.
South Africa sugar tax: the detail
Open only what you need.
- Rate
- 2.21 cents per gram of sugar above the first 4g per 100ml
- Unlabelled drinks
- Taxed as if they had 20g of sugar per 100ml
- Since
- April 2018; the rate was last raised in 2019, and later rises were frozen or cancelled
- The debate
- Health groups want the levy raised to about 20% of the price; the sugar cane growers want it scrapped
Pass it on
Raise the price by the tax or more. Works for products whose sales hold up when the price rises.
Absorb it
Keep the price and take the cost. Works when a rise would push a product past a key price point and lose more profit than the tax.
Cut sugar
Each gram cut above 4g per 100ml saves 2.21 cents on every 100ml.
What is the sugar tax in South Africa?
The Health Promotion Levy: 2.21 cents for every gram of sugar above the first 4g per 100ml.
How much sugar tax is on a can of soft drink in South Africa?
About 48 cents on a 330ml can with 10.6g of sugar per 100ml.
Has the sugar tax in South Africa gone up?
Not since 2019. Later rises were frozen or cancelled, and health groups and sugar growers disagree about what should happen next.
What if a drink doesn't show its sugar content?
It is taxed as if it had 20g of sugar per 100ml.
How much does a sugar tax review cost?
A review of up to 10 products has a fixed price from £7,500 (about R170,000) and takes about three weeks. For 11 to 50 products, a full pricing review with the sugar tax built in costs around £17,500 (about R390,000). It starts with a free 15-minute call.
Do you work with brands in South Africa?
Yes. We're based in the UK and work remotely and in English, under NDA. Prices are fixed in pounds sterling before we start, and the first step is a free 15-minute call.
- Daily Maverick, sugar tax sparks health, jobs and affordability debate ahead of the mini-budget (20 October 2026)
- Daily Maverick, Budget 2026: a chance to boost the sugary drinks tax (24 February 2026)
Checked on 25 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.