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Should Australia tax sugar sweetened beverages?

By Jessica Young

Should Australia tax sugar sweetened beverages?

The obesity-related price policy that has received the most attention in Australia to date is a tax on sugar-sweetened beverages (SSBs). Such taxes have been shown to reduce consumption of SSBs, which is associated with weight loss. Taxes can also encourage manufacturers to reformulate SSBs to reduce sugar content.

Similarly, should Australia introduce a sugar tax on soft drinks?

6.32 The committee recommends that the Australian Government introduce a tax on sugar-sweetened beverages, with the objectives of reducing consumption, improving public health and accelerating the reformulation of products.

Also, why Australia should not have a sugar tax? One of the most common arguments used to oppose taxes on sugar-sweetened beverages is that such taxes are regressive, and it is unfair to make poorer people pay a larger share of their limited incomes to consume these products, when compared to wealthier people.

Also to know is, should sugary beverages be taxed?

Taxation on sugary drinks is an effective intervention to reduce sugar consumption (8). Evidence shows that a tax on sugary drinks that rises prices by 20% can lead to a reduction in consumption of around 20%, thus preventing obesity and diabetes(9).

Why should we not tax sugary drinks?

Opposition to taxes on sugary drinks focuses on freedom of choice and that these taxes disproportionately hit the poor. One argument against these taxes is that people should be allowed to decide for themselves what to purchase without the government using taxes in a paternalistic manner to influence their decision.

What Organisations support a sugar tax in Australia?

Supporters of an Australian tax on SSBs include the Australian Council of Social Services, Australian Dental Association, Australian Medical Association, Australian and New Zealand Obesity Society, Baker Heart and Diabetes Institute, Cancer Council Australia, Consumers Health Forum of Australia, Diabetes Australia,

Why Australia needs a sugar tax?

The Australian sugar industry will face some transition costs as more sugar will need to be exported, as about 80 per cent is already. The revenue raised by the new tax could go to promoting healthier eating, preventing obesity, reducing the budget deficit or a variety of other purposes.

Why the sugar tax is good?

Rayner's study found that the best case scenario for the tax would be it resulting in major soft drink manufacturers reformulating their products to be less sugar-heavy. This would lead to reduced rates of obesity and better oral health in children, and reduced risk of type-2 diabetes for all age-groups.

Is the sugar tax a law?

The UK sugar tax

Officially called the Soft Drinks Industry Levy (SDIL), the tax puts a charge of 24p on drinks containing 8g of sugar per 100ml and 18p a litre on those with 5-8g of sugar per 100ml, directly payable by manufacturers to HM Revenue and Customs (HMRC). It's not the first effort to reduce sugar in the UK.

Is the sugar tax effective?

It shows that the sugar tax on soft drinks introduced in 2017 has proved unexpectedly successful and has led to a 28.8% fall in the amount of sugar contained in such beverages. PHE's research also found that many other common treat foods have undergone only tiny falls in their sugar content.

Does sugar tax reduce obesity?

A new study, where researchers tried to estimate the impact of a sugar tax on soft drinks, found that it would help combat child obesity as well as tooth decay. This option was estimated to help reduce obesity cases in the UK by around 150,000 per year, as well as reducing cases of tooth decay by 250,000.

What percentage is sugar tax?

Ireland. Soda tax introduced on 1 May 2018. The tax will see 30 cent per litre added to the price of popular sweetened drinks containing more than 8g of sugar per 100ml.

Who is affected by sugar tax?

Coca-Cola South Africa said the new sugar tax will lead to the loss of more than 1,000 employees. Along with “economic headwinds,” and lower consumer spending, Coca Cola South Africa reported lower volumes (paywall) that it will only recover from in 2021.

What are the disadvantages of sugar tax?

The cons of a SSBT
  • Taxing SSBs may not provide the health improvement hoped for in Australia and New Zealand because intake of SSBs is relatively low and declining2.
  • The evidence suggests that food taxes don't always create the intended result of reducing consumption and when they do the effect is small[ix].

How will sugar tax affect the economy?

Sugar production contributes approximately R14 billion to South Africa's GDP and the industry directly employs 85 000 people and indirectly contributes to employment of 350 000 people through food processing and other sectors.

What is tax on sugar sweetened beverages?

No state currently has an excise tax on sugar-sweetened beverages. Instead, soda taxes are levied locally in Boulder, Colorado; the District of Columbia; Philadelphia, Pennsylvania; Seattle, Washington; and four California cities: Albany, Berkeley, Oakland, and San Francisco.

How taxing sugary drinks affects a community's health and economy?

Sugary drinks taxes decrease consumption

Philadelphia taxes both regular and diet sodas. Overall, residents drank about 30 percent fewer sugary drinks, researchers found, in line with a Drexel University study that predicted Philadelphians would drink about 40 percent fewer sugary drinks once the tax went into effect.

Which countries have a sugar tax?

As of June, 2018, 11 European countries that now have some form of sugar or health tax, including the UK, Ireland, France and Portugal. Among Middle East and North Africa nations, there are now four sugar taxes in play with the recent introductions by Saudi Arabia and the UAE.

What does sugar tax mean?

The sugar tax is a levy put on drinks companies to crack down on high sugar levels in soft drinks. Companies are now taxed according to the sugar content of their wares. The sugar tax is designed to reduce the consumption of drinks with added sugar.

Does the sugar tax work in Mexico?

40 Studies conducted using nationally representative samples in Mexico found that households with low socioeconomic status experienced the largest reduction in purchases of sugar sweetened drinks after the tax, compared with higher socioeconomic status strata.

Does NZ have a sugar tax?

Excessive intake of sugar sweetened beverages (SSBs) is a preventable cause of death. While some countries have implemented a tax on SSBs, other countries, such as New Zealand, rely on industry self-regulation and individual responsibility, such as referring to labels, to control one's own sugar intake from SSBs.

What states tax sugary drinks?

No state currently has an excise tax on sugar-sweetened beverages. Instead, soda taxes are levied locally in Boulder, Colorado; the District of Columbia; Philadelphia, Pennsylvania; Seattle, Washington; and four California cities: Albany, Berkeley, Oakland, and San Francisco.