Tax Policy Research Papers - Academia.edu (original) (raw)

The Government of South Africa plans to implement a tax on sugar-sweetened beverages (SSBs), as outlined in the 2017 budget. The tax, however, remains contentious as pro-and anti-SSB stakeholders alike have drawn on speculative figures to quantify the currently unknown fiscal, economic, and health impacts of the proposed tax. This paper draws on international good practice in monitoring and evaluation, and the National Evaluation Plan criteria, to develop a monitoring and evaluation framework for the SSB tax. Applying the Logical Framework Approach, all potential impacts of the proposed tax, both positive and negative, are identified and matched with the appropriate unit of measurement to develop a comprehensive set of performance indicators. These performance indicators include, but are not limited to, the effects of the tax on economic output, employment, Value-Added and Corporate Income Tax collections, and obesity, diabetes and other noncommunicable disease rates. Each indicator is accompanied by a data collection plan that covers proposed timelines for baseline and subsequent data collection, as well as various data collection methods. These include the use of existing data sources, extensions to current data collection instruments, and the development of purpose-designed surveys. If properly implemented, the proposed economic monitoring and evaluation framework will provide the National Treasury with the necessary evaluative evidence to set the SSB tax at an optimal level that maximises the health benefits of the tax, while minimising any of the potential negative economic consequences. This topical case study provides an instructive opportunity to highlight the key role played by evaluations in the implementation of sound policy that promotes the public interest.