Egypt is considering the introduction of a tax on sugar-sweetened products that exceed global sugar content standards, press reports citing official sources said this week.
The tax is intended to curb the consumption of sweetened beverages by increasing their prices. Products typically affected by such taxes include soft, sports, and energy drinks.
“The aim is to promote healthier lifestyles and reduce obesity, diabetes, and chronic diseases,” said a government source.
According to official sources, the idea is still in the preparatory phase and is focusing on identifying international benchmarks for sugar levels in beverages and other products. The government will then determine the tax rate, the implementation mechanism, and the legislative amendments required to enforce it.
The food industry consumes one-third of Egypt’s sugar production, said Hassan Al-Fendi, head of the Sugar Division at the Food Industries Chamber of the Federation of Egyptian Industries.
The Ministry of Finance has denied plans to impose value-added taxes on raw sugar. If taxes are introduced, they would apply to sugar-sweetened or processed products, it said.
It noted that factories would not shoulder the extra cost, and instead this would be passed on to wholesalers, retailers, and ultimately the end consumer.
Al-Fendi said that the tax would average between five and 14 per cent. If the rate is five per cent, the price of a small juice box would rise by three per cent over its current price, whereas a 14 per cent tax would lead to an eight per cent increase in the price.
International Diabetes Federation figures indicate that 20 per cent of Egyptians between the ages of 20 and 79 are at risk of developing diabetes.
During the inauguration of a local insulin production factory, Health Minister Khaled Abdel-Ghaffar stated that there are 55,000 Egyptian children with type 1 diabetes and 1.5 million with type 2.
The media cited the minister as noting that Egypt needs 17 million doses of insulin annually to treat diabetes patients, which costs the state LE3 billion ($58.9 million) each year.
The World Health Organisation (WHO) reported that at least 85 countries currently impose some form of tax on sugar-sweetened beverages. The UN agency’s guide showcases successful experiences from countries such as Mexico, South Africa, and the UK.
The WHO said that taxes on sugar-sweetened beverages, tobacco, and alcohol are cost-effective measures for preventing disease and premature death. This week, the WHO released its first global tax guide on sugar-sweetened beverages.
According to a WHO report, regular consumption of these beverages, including soft drinks, flavoured milk, energy drinks, vitamin waters, fruit juices, and sweetened iced tea, is linked to an increased risk of tooth decay, type 2 diabetes, being overweight, obesity, heart disease, stroke, and cancer in children and adults.
Hamam Hussein, head of the Sugarcane Producers Association, stated that the supply price of the sugar crop would not be affected. The impact, he said, would be on manufactured products, not the raw crop, adding that any decrease in the supply price would discourage farmers from growing sugarcane.
During the season that ran from late January to April, a ton of sugar was supplied for LE2,500. The price was initially satisfactory to farmers, but the recent increase in petroleum prices led to higher production costs.
As a result, the price had become unprofitable, Hussein said.
* A version of this article appears in print in the 15 May, 2025 edition of Al-Ahram Weekly
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