Taxing sugary beverages makes us drink them less
A tax of this kind would raise the prices of soft drinks and juices, as well as other sugary beverages, by about 20%. The money raised can be used to finance health promotion programs across the country.
His claims are backed by strong evidence.
Read more: A sugary drinks tax could recoup some of the costs of obesity while preventing it.
Taxes on sugary drinks work
In recent years, several governments have imposed taxes on sugary beverages. They work.
Summarized 17 studies last year found that health taxes on sugary beverages implemented in Berkeley and other places in the United States and Mexico, Chile, and France reduced sugary drink purchases and consumption.
Data from around the globe shows that a 10% tax on sugary drinks reduces consumption by 10%.
Headlines have also appeared in recent times about the United Kingdom’s soft drink tax. Since the introduction of the tax, the amount of sugar in drinks has dropped by nearly 30. Six out of 10 leading beverage companies have reduced the sugar content to more than 50%.
Read more: Sugary drinks tax is working – now it’s time to target cakes, biscuits, and snacks.
In Australia, modeling studies have shown a 20% health tax on sugary drinks is likely to save almost A$2 billion in healthcare costs over the lifetime of the population by preventing diet-related diseases like diabetes, heart disease, and several cancers.
The benefits of this are in addition to the financial savings that come from preventing dental issues associated with sugary drinks.
Nearly half of the benefits to health (almost 50%) would be experienced by those in the most disadvantaged socioeconomic situations.
A health tax of 20% on sugary beverages would also raise more than A$600,000,000 for Australians to invest in their health.
Sugar taxes cause people to switch to artificially sweetened beverages and bottled water. l i g h t p o e t/Shutterstock
What’s the issue?
Soft drink companies use all the tricks in the book to try to convince politicians that a tax on sugary beverages is a bad policy.
We have responded to some arguments that are commonly used against taxes.
Myth No. 1: Sugary drinks taxes unfairly harm the poor
The higher price of sugary drinks would hurt people with lower incomes. A 20% tax in Australia on sugary beverages would cost low socioeconomic households A$35 more per year. This is only A$4 more for the richest families.
The poorest households will benefit the most from long-term savings and health benefits.
The money raised by the tax could also be used to reduce health inequalities.
Read more: Australian sugary drinks tax could prevent thousands of heart attacks and strokes and save 1,600 lives.
Myth 2: Sugary drink taxes would result in job losses
Numerous studies have found that taxes on sugary drinks did not result in job losses in Mexico or the United States.
The case is not supported by some studies sponsored by industry.
In Australia, the job losses that would result from such a tax will likely be minimal. The demand for beverages by Australian manufacturers will not change significantly because consumers are likely to switch to other products, such as bottled water and artificially sweetened beverages.
Taxing sugary drinks will not cost jobs. Successo images/Shutterstock
A tax on sugar in Australia would have a minimal impact despite protestations from the industry. This is due to the fact that 80% of locally produced sugar is exported. Sugary drinks are a very small part of Australian sugar production. The 1% expected drop in demand will be traded somewhere else.
Myth #3: People do not support health taxes on sugary beverages
In Australia, there is wide support from the major consumer and health groups for a sugary drink tax.
A national survey conducted in 2017 found that 77% of Australians would support a tax on sweetened drinks if the proceeds went to obesity prevention.
Myth #4: People will switch to other unhealthy products, so a tax on them is ineffective
Levies or taxes can be used to prevent unhealthy substitutes by covering soft drinks, sports drinks, and energy drinks.
Evidence also shows that people switch from sugary drinks to water as a response to taxes on them.
