STAR Africa Corporation (Star Africa) says the government’s reluctance to review the surcharge on sugar and value-added tax (VAT) expenses continue to erode the group’s operating margins. Authorities introduced a US$0,001/gram sugar tax on beverages in early 2024, while basic products, including sugar were moved from zero-rated to exempt, raising production costs. In its financials…
Sugar tax, VAT choke StarAfrica
The group’s consolidated turnover decreased by 25 percent from ZiG965,6 million to ZiG727,1 million, primarily due to a reduction in sales volumes of 26 percent at Goldstar Sugars.