My Thoughts on the Controversial UK Sugar Tax.
Last month, the UK government published draft legislation for a tax on sugar-sweetened drinks, which is set to begin from April 2018. The rate has yet to be set but it is hoped the move will help tackle the nation’s obesity problem. What is clear, however, is that the drinks industry is seeking to make any levy as low as possible when in fact it needs to be high in order to change pricing.
The tax will not come into force until 2018, giving the soft drinks companies time to change their recipes and reduce the sugar content to reduce their levels of tax. The consumer will, of course, see a rise in the price of the sugary drinks that contain the highest levels of sugar, but then this is the point of the tax.
To address obesity as public health issue, various policy options were discussed in the UK’s national assembly, among them, levying a content tax on sugar-sweetened beverages (SSB). The government decided to stop just talking about sugar-sweetened beverage taxation (SSBT) and announced plans for an introduction by 2018 (Hawkes, 2016).
Perhaps the most commonly-recommended policy is a tax on sugar-sweetened beverages (SSBs). This paper estimates the extent to which a tax on SSBs is passed through to consumers in the form of higher prices. We examine the first city-level tax on SSBs in the U.S., which was enacted by the voters of Berkeley, California in November, 2014.
Excess intake of sugar sweetened beverages (SSBs) has been shown to result in weight gain. To address the growing epidemic of obesity, one option is to combine programmes that target individual behaviour change with a fiscal policy such as excise tax on SSBs. This study evaluates the literature on SSB taxes or price increases, and their potential impact on consumption levels, obesity.
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How will a sugar tax affect the ad industry? No amount of hot and heavily sweetened tea - the age-old remedy for shock victims - will lessen the collective jolt given to soft-drink advertisers by George Osborne's imposition of a sugar tax on their unhealthiest products.