Canegrowers warn doubling sugar tax will hurt industry

Queensland sugar cane growers have warned doubling the sugar tax would cripple the industry and cost thousands of jobs.

The Federal Government is considering doubling the sugar tax from 1.5 cents per gram to 3 cents per gram as part of its plan to combat obesity. But the Queensland Canegrowers Association (QCGA) said the tax would have a devastating impact on the sugar industry, which is worth $2 billion a year to the Australian economy.

QCGA chairman Paul Schembri said the tax would make Australian sugar uncompetitive on the world market.

“We are already facing tough competition from other sugar-producing countries, and this tax would make it even harder for us to compete,” he said.

"The sugar industry is a major employer in regional Queensland, and this tax would put thousands of jobs at risk."

The tax would also hurt Australian consumers, Schembri said.

"The tax would be passed on to consumers in the form of higher prices for food and drinks," he said. "This would be a particular burden for low-income families." The QCGA is calling on the Federal Government to reconsider the sugar tax. "We believe there are better ways to combat obesity than by taxing sugar," Schembri said. "We would like to see the government focus on education and healthy lifestyle programs."