What is the Sugary Beverages Levy?

The Sugary Beverages Levy (SBL) is a new Health Promotion Levy in support of the Department of Health’s deliverables to decrease diabetes, obesity and other related diseases in South Africa.
SBL was announced by the Minister of Finance in the February 2016 National Budget and is part of the Rates and Monetary Amounts and Revenue Laws Amendment Act, 2017.

SBL will be administered and collected by SARS.

When will it be implemented?

SBL will be implemented with effect from 1 April 2018.

Other key dates and milestones are:
Date ​                               ​Milestone
16 March 2018​ ​Licensing and registration to be completed
From March 2018​ ​Roadshows with traders and stakeholders (Completed 1 - 8 March 2018)
26 October 2017​ Draft Rule Amendment for the Rules for Chapter VB of the Act in  
respect of Health Promotion Levy Goods
was published for comments
10 November 2017​ ​Draft rule amendment – Health promotion levy on sugary beverages and the Completion Notes for the sugary beverage Levy return was published for comments
10 November 2017​ Form DA 179 (Health Promotion Levy Return for Sugary Beverages) and
Form DA 185.4B2 (Licensing Client Type 4B2 – Manufacturing Warehouse) were published for comments


Information shared during roadshows?

The following information was shared during the regional roadshows between 1 - 8 March 2018:

How will SBL work?

SBL will be calculated as follows:
  • The rate is fixed at 2.1 cent per gram of the sugar content that exceeds 4 grams per 100ml. The first 4 grams per 100ml are levy free;
  • SBL will be paid in addition to any other Customs and Excise Duty payable and imports will not be declared on separate bills of entry;
  • Sugar content means both the intrinsic and added sugar and other sweetening matter;
  • Sugar content will be calculated on:
    • The sugar content as certified on a recognised test report from a testing facility accredited with SANAS or ILAC;
    • In the absence of such a valid test report, a deemed sugar content of 20 grams per 100 ml is assumed.
  • For powder and liquid concentrates, sugar content will be calculated on the total volume of the prepared beverage.

Who will be liable to pay SBL?

All goods as specified in the Schedule No. 1 Part 7, Section A manufactured in or imported into South Africa will be subject to the payment of SBL, specifically:
  • Identified imported products will be taxed when it is cleared for home consumption and
  • Locally manufactured products will be taxed at source.
Please note that SBL is a domestic consumption tax and is therefore not payable on sugary beverages that are exported or processed in the manufacture of other dutiable goods.

How will SBL be paid?

SBL returns can be submitted and paid through:
Licenced manufacturers must declare and pay the SBL within 30 days after the end of the accounting period of a calendar month. Payment must be made no later than the pen-ultimate working day of the month  before 15:00 for manual payments and before 24:00 for electronic payments.

Top tip: If you are not yet registered for eFiling yet, please register as soon as possible, click here to register.

What will happen next?

SARS will invite all stakeholders to country-wide roadshows to commence February 2018. The registration and licencing process will be communicated through the roadshows, direct communication and this webpage.

Please keep an eye on this webpage for roadshow dates, roadshow presentations, FAQs and more.

Need help?

If you have any questions, you may:


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Last Updated: 20/03/2018 2:40 PM     print this page
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