Pick n Pay President Gareth Ackerman.
- The country’s largest consumer companies have urged President Cyril Ramaphosa to scrap the sugar tax and suspend fuel levies to help companies cope with reduced charges.
- They said the cargo shedding, which had “increased catastrophically”, was crippling business.
- The companies also want the production of essential foods to be exempt from the reduction of charges.
- For more financial news, go to News24 Business cover.
The Consumer Goods Council of South Africa (CGCSA) on Tuesday urged President Cyril Ramaphosa to remove the tax on sugar, as well as suspend taxes on fuel and levies on the road accident fund for the industry amid record levels of load reduction.
In an open letter to Chairman Cyril Ramaphosa, sent on behalf of the CEOs of Shoprite, PepsiCo, Coca-Cola, Tiger Brands, Burger King, British American Tobacco, Walmart-owned Massmart, Famous Brands, owner of Steers, and others The CGCSA says that cargo shedding has “escalated catastrophically” and was crippling businesses.
The CGCSA represents 12,000 companies, including major manufacturers, retailers, and wholesalers.
The open letter, which was signed by CGCSA and Pick n Pay Chairman Gareth Ackerman, said the cost of power generators is unsustainable and would result in higher prices for already struggling consumers.
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“The deterioration of other essential infrastructure, such as water, roads, railways and the police, makes our tasks and those of thousands of other companies across the country even more difficult,” the CGCSA said in the letter.
“If this crisis continues, we will not be able to guarantee a stable supply of food, medicine and other essential goods. The government must understand this, instead of believing that we can carry on with business as usual.”
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The letter details urgent actions the government must take to help businesses, including removing the so-called sugar tax. The CGCSA also called for the suspension of the fuel tax and the Road Accident Fund for consumer goods companies and their value chain, “as long as we suffer regular load cuts.”
The CGCSA said its industry is a “critical sector that should be considered for fuel discounts similar to the mining, agriculture, fishing and forestry sectors.”
Effective taxes and other incentives were also needed to install localized renewable energy on a small and medium scale.
The CGCSA was also required to take steps to ensure that critical infrastructure such as essential food production, medicines and distribution facilities were “not only exempt from load reduction, but also prioritized on the safety list.” and protection”.
The letter comes as Ramaphosa apparently fired a broadside at the private sector at Mining Indaba in Cape Town on Tuesday, urging it not just to criticize, but to work alongside the government to solve South Africa’s problems, such as its energy crisis.
