sugar tax uk pros and cons

Malik VS, Popkin BM, Bray GA, Despres JP, Hu FB. alcohol and tobacco. Health economics. For example, kilojoules may be compensated in other foods and drinks. Taxes based on sugar content reduce consumption more effectively than taxes on volume. The UK has a well-publicising obesity epidemic, and many are hoping the tax can reduce sugar … With some supermarkets now committing to reduce the sugar content in their drinks ranges, do we think that a tax on certain types of sugar will actually make a difference? What about those people who are overweight or obese but it’s because of other foods/drinks they consume….not fizzy drinks!. 2009;99(2):159–64. In behavioural economics, ‘nudging’ people toward healthier choices by making them more accessible or appealing is considered less paternalistic but still powerful for creating behaviour change [xv]. We can’t resolve an obesity problem by just cutting out fizzy drinks! Keri Heath weighs up the pros and cons of the measure proposed in the recent budget. By Keri Heath | Nov 11 2016. Not only are sugary drinks bad for your waistline, but it’s also not great for your teeth! The proposed tax would only target fizzy drinks. Now, celebrity baker Nadiya has said she's not sure who it's helping. Governments are starting to use taxes to discourage consumption of sugary drinks. Leeds How obesity is reshaping our world. For example, a subsidy applied to fruits and vegetables would reduce the price to shoppers, increase demand and consumption, and improve health outcomes. The … In conjunction with clear food labelling this would go some way to educate consumers about their diet and daily intake of nutrients. The pros and cons of a sugar tax. Cat. It could raise costs all round: The tax is levied on soft drinks companies – not the drinks themselves. Bigger picture view – we know that some people drink A LOT of fizzy drinks – what support will they be given when they start showing signs of sugar withdrawal (if they stopped drinking fizzy drinks)? If someone really wants a fizzy drink, they will pay for it, regardless of the cost. Demand elasticity: is a measure of how much the quantity demanded will change if another factor changes. Sugar-free drinks cost much less to make but are sold at the same price making them more profitable. Leeds Website design by, Sources and types of carbohydrates and sugar, Sugar processing: growing, milling, refining, http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4364.0.55.007main+features7102011-12, http://www.aihw.gov.au/publication-detail/?id=60129555173, http://circ.ahajournals.org/content/121/11/1356.short, http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0151460#pone.0151460.ref004, http://onlinelibrary.wiley.com/doi/10.1002/hec.3070/abstract?userIsAuthenticated=false&deniedAccessCustomisedMessage=, http://www.ncbi.nlm.nih.gov/pubmed/19298422, http://www.ncbi.nlm.nih.gov/pubmed/23174017, http://www.ncbi.nlm.nih.gov/pubmed/19124872/, http://www-personal.umich.edu/~prestos/Downloads/DC/pdfs/Downs_Sept22_Downsetal2009.pdf, http://www.ncbi.nlm.nih.gov/pubmed/26154289?report=abstract. 7 Marshall Court “[Sugar taxes] are remarkably ineffective as a way of getting people to reduce their consumption of sugary drinks, let alone reducing their … Crammond B, Van C, Allender S, Peeters A, Lawrence M, Sacks G, et al. 2010;121(11):1356–64. Arguments against a sugar tax . The government’s new so-called sugar tax is a subject almost guaranteed to spark some fizzing debate. Published 2 February 2012. Both the Australia and New Zealand governments have ruled out a SSBT at this stage. BOD 4. Sugar tax: the soft drinks that slashed their sugar ahead of the levy Sugar tax and other levies protect poorest from ‘catastrophic’ cost How meal deals could undo the benefits of the sugar tax PLoS One. In a US systematic review of fiscal measures for improving public health, cheaper fruit and vegetable prices were found to be associated with lower body weight outcomes among both low-income children and adults, suggesting that subsidies that reduce prices of fresh produce may be effective in reducing obesity7. Canberra: AIHW. The reasoning behind the calls for a sugar tax have not changed either – they are focused on ways to reduce obesity in children. Consuming too many SSBs is a behavioural problem and a behavioural approach would suggest rewarding healthier choices because reward is more effective than punishment [xiii]: when it comes to health decisions, the ‘carrot’ is better than the ‘stick’ [xiv]. We’ve long supported this policy, and welcome it coming into force. Average energy intake would go down by 16 kJ/day (men), and 9 kJ/day (women). Available at URL, [xvi] Ni Mhurchu C, Eyles H, Genc M, Scarborough P, Rayner M, Mizdrak A, Nnoaham K, Blakely T. Effects of Health-Related Food Taxes and Subsidies on Mortality from Diet-Related Disease in New Zealand: An Econometric-Epidemiologic Modelling Study. 012483418) owned by motive8 Limited. Australian Burden of Disease Study: impact and causes of illness and death in Australia 2011. 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 … Subsidy: a subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. Australian Bureau of Statistics 4364.0.55.007. Circulation. Among discretionary foods, soft drinks ranked number seven after confectionary, sweet biscuits, alcohol, pizzas, burgers and tacos, pastries and fried potatoes. doi: 10.1111/obr.12004 pmid:23171416. Those taxes typically scale with drink volume. Copenhagen: WHO Regional Office for Europe, 2015. 2014;23(9):1159–84. alcohol and tobacco. An analysis of US studies that linked soda taxes to weight outcomes showed minimal impacts on weight (however they were based on sales taxes that were relatively low)[x]. That could help to prevent up to 2,700 cardiovascular-related deaths that … Since the tax was introduced, small businesses have been using a variety of techniques to mitigate their losses. The most immediately obvious benefit, and that which most would wager, is the primary cause of the tax is the potential improvement of the nation’s health. What about those other sources of refined sugar such as cereals and sweets? Maybe education is a better step forwards than the sugar tax? P4P4P: an agenda for research on pay-for-performance for patients. Governments do not like directing tax to specific purposes but prefer to add it to general revenue. Hendrie, G.A., Baird, D., Syrette, J., Barnes, M., Riley, M (2015) Consumption of fruit juice in the Australian population: A secondary analysis of the Australian National Nutrition and Physical Activity Survey 2011-12. Removing this “health premium” would make sugar-free drinks cheaper and shift demand in a healthier direction. A sugar tax would be an effective part of a joined-up approach to reducing sugar consumption, which should also include: Nutrition education for children in schools Clearer sugar contents labelling on food and drink packaging to allow consumers to … Discuss the validity of this view." The evidence on the economic impact of food taxes is limited and this makes government policy makers wary[xii]. Public health advocates say an SSBT in Australia and New Zealand could help reduce consumption of SSBs and thereby reduce obesity and other associated diseases. Email [email protected], © Motive8 North 2021   Reg No: 07487095   Vat No: 187710287 3. According to ABC News, a 20% tax placed on sugar-sweetened drinks could lower obesity rates by as much as 3.5%. Mexico's Sugar Tax Known as the fattest nation with 70% of the population being overweight or obese (Johnson 2015). The m8 logo and motive8 name are protected as a European registered trade mark (No. Saxton http://www.telegraph.co.uk/news/health/news/11622500/Sugar-tax-to-pay-for-treating-obesity.html, http://www.bbc.co.uk/news/health-26442420, http://www.independent.co.uk/news/uk/home-news/calls-for-sugar-tax-to-reduce-rise-in-child-obesity-9554436.html, We know that there is an obesity problem in the UK and that sugar (in addition to other foods stuff) is therefore bad for our health. Cross elasticity of demand: or cross-price elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in the price of another good. Here is a great example of a Year 12 student essay written on the sugar tax in the UK. Is it a fundamental move in the fight against obesity or a toothless one-trick pony that will do little more than force fizzy drinks fans to fork out a little more for their sugary beverages? As personal trainers, it’s often surprising how little any new clients know about nutrition and hidden sugars. This could be seen as a tax on obesity – is this discrimination? Alcoholic drinks, milk-based drinks and pure fruit juices are exempt irrespective of sugar content. Fiscal measure: in economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. Assessing the potential effectiveness of food and beverage taxes and subsidies for improving public health: a systematic review of prices, demand and body weight outcomes. Sugar-sweetened beverages, obesity, type 2 diabetes mellitus, and cardiovascular disease risk. The tax could mean that people turn to more artificially sweetened drinks such as “diet” versions of the same brand – goodbye sugar, hello aspartamine & saccharin! Core B What WHO is asking for – a tax on sugary drinks – is something known as a sin tax. 2015 Jul 8;10(7):e0128477 Available from URL. Keep up to date with the latest news and publications from Sugar Nutrition Resource Centre. The poor already pay a higher proportion of their income on food and paying more for SSBs may mean they spend even less on nutritious foods. Consumption of sweetened beverages. They also encourage businesses to reduce sugar … This report analyses the potential benefits and costs of scaling these taxes to sugar content. January 2014: implementation of 1 peso per liter on sugar-sweetened beverages (about It would be similar in principle to a cigarette or alcohol tax. By Aug 29, 2016. Australia is lagging behind the 28 jurisdictions with such a tax already in place. Marshall Street An increase in food taxes are not always fully reflected in retail prices as companies may absorb part of the cost increase. 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]. Subsidising healthier foods is another example of rewarding healthier choices. Could a sugar tax help combat obesity? Sugar tax needed, say US experts. Commonly known as the ‘Sugar Tax’, 50 percent of soft drinks manufacturers have reduced the sugar content of their drinks to avoid paying the … For example, when a product becomes more expensive, consumers may switch to cheaper substitutes. A diet high in sweetened beverages ranked number eight at 0.3 percent. The UK Sugar Tax Pros. The South African government is proposing a tax on sweetened beverages from next year. The tax’s poor design means it fails to penalise the drinks with the higher sugar content. The New Zealand Taxpayers’ Union is a firm advocate against the taxation of sugar in the country, and released a report supporting its argument titled ‘The Bitter Truth: Why don’t sugar taxes work?’. LS9 8HH, Telephone 0113 243 0161 The more tax on the rich comes by what the cost is for their purchase. Sugar-free drinks cost much less to make but are sold at the same price making them more profitable. An analysis of the contribution of poor diet to the burden of disease in Australia (2011) by the Australian Institute of Health and Welfare[iii] calculated the percent of DALYs (Disability Adjusted Life Years) attributable to a range of dietary components. The Australian modelling above is based on 2011 data and consumption of SSBs has declined since then. Marshall Court (Head Office) It could help to slow the rise in obesity that is being seen. One example is the price elasticity of demand; this measures how the quantity demanded changes with price. Terms and Conditions & Privacy Policy. [br]ON October 11th, Minister for Finance Michael Noonan announced that the long discussed tax on sugary drinks will be implemented in the upcoming budget. But sugar content varies widely. Taxing unhealthy foods and drinks to reduce consumption for public health reasons is an example of a government fiscal measure and can be effective because price is a key determinant of food choice[v]. Using price policies to promote healthier diets. The sugar tax: questions and answers Tax will see price of some sugar-sweetened drinks rise 60c for a two-litre bottle sugar is for any reason not reported separately. A sin tax is just what it sounds like: A tax on something that’s bad for you. Psychological Science, 2013; Available at URL, Downs JS, Loewenstein G, Wisdom J. The logic behind a sin tax is twofold: 1. 2009 Jan-Feb; 28(1):206-14. American Economic Review Papers & Proceedings. Critics argue the tax will be regressive – taking more from low-income groups. They estimate this could to save 1,600 lives, prevent 4,400 heart attacks and 1,100 strokes and save the health-care system up to A$609 million. Available at URL. ... It’s also important to know why exactly sugar is as bad for you as it is; information on the different types of sugar, and their various pros and cons, never seems to come to light whenever the sugar tax debate flares up. A SSBT is what is known as a ‘regressive tax’ because it disproportionally affects poor people. But it … Sirpa Sarlio-Lähteenkorva says that a specific tax on sugar would reduce consumption, but Jack Winkler thinks that such taxes are politically unpalatable and would have to be enormous to have any effect Taxes are traditionally regarded as a source of revenue, but they can also be used as tools in health policy. Obes Rev. 3. Australian Burden of Disease Study series no. There needs to be more accessible support networks, more education, and more focus on nutrition and exercise overall. American Journal of Public Health. The sales tax would have the same percentage say 10 to 12% and everyone pays it. Teenagers consume a higher proportion (6%) of total energy as SSB and boys (aged 14-18 years) drink the most; and people in socially disadvantaged groups are more likely to drink SSBs[ii]. Available at URL. Will a Sugar Tax Work in Ireland? "globesity" and the debate of A sugar tax The notion of "Globesity" Yes to Tax! CSIRO, Australia. Volpp KG, Pauly MV, Loewenstein G, Bangsberg D. Health Aff (Millwood). Drinks with ≥8 g of sugar per 100 mL are charged £0.24 per litre and those with ≥5 g but <8 g per 100 mL are charged £0.18 per litre. When these modest decreases were extrapolated over 25 years (assuming no other dietary changes), the authors predicted small declines in the prevalence of obesity of about 0.7% in men and 0.3% in women. 2013;14(3):213–21. LS11 9YJ, Saxton Fitness Studio doi:10.1371/journal.pone.0151460Available at URL, Sharma A, Hauck K, Hollingsworth B, Siciliani L. The effects of taxing sugar-sweetened beverages across different income groups. Some pubs have taken to using the low-sugar and sugar-free variations of fizzy drinks as standard for their mixers to keep prices down for customers, but offering the full-sugar versions on request. In a BMJ article2 JT Winkler from London Metropolitan University, UK, suggests making sugar-free drinks cheaper by reducing the margins companies put on them. Other consumables that are bad for our health are already taxed i.e. Making fizzy drinks more expensive may see a reduction in how many people have in a day. PLoS ONE 11(4): e0151460. Consumption of sugar imposes costs on individuals (lower life expectancy) and the rest of society (higher health care costs + lower productivity). Making fizzy drinks more expensive may see a reduction in how many people have in a day. Australian research[viii] suggests cross price elasticity exists between SSBs and ‘diet’ soft drinks; a cost increase in SSBs as a result of a tax is predicted to result in switching to diet drinks which would be become cheaper. The question was: "A tax on the producers of high sugar drinks is justified as a means of tackling chronic health problems in the UK. Back in 2014 doctors suggested that there should be a soft drinks tax. Other consumables that are bad for our health are already taxed i.e. Locked Bag 2222North Ryde NSW 2113 Australia, Copyright © 2021 Sugar Nutrition Resource Centre. The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food. I submit that a National Sales Tax like most of the states already have should totally replace the Income Tax. Available at URL, Powell, LM and Chaloupka, F.J. Food prices and obesity: evidence and policy implications for taxes and subsidies Milbank Q 2009; 87: pages 229-257 Available at URL, Powell LM, Chriqui JF, Khan T, Wada R, Chaloupka FJ. The Parade Building Available at URL, AIHW 2016. WHO Regional Office for Europe. Andreyeva T, Long MW, Brownell KD. In a US analysis, the price elasticity of demand for soft drinks was considered high; an increase in price should reduce consumption, however assessments of differences in responsiveness to food prices according to age, education, culture, or ethnicity are not known [xi]. • 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). Pros and cons of a sugar tax 02 June 2016 Print A sugar tax ... UK, suggests making sugar-free drinks cheaper by reducing the margins companies put on them. Denmark has dismantled their ‘fat tax’ due to a lack of health improvement and unintended adverse consequences such as increased food costs, high administrative burden and tax evasion. ... Sugar tax confirmed for South Africa in 2017. Bridget Turner, our Director of Policy, Campaigns and Improvement, said: “Evidence shows that this levy has the potential to prevent obesity in up to 140,000 adults and children each year and, in turn, prevent nearly 19,000 cases of Type 2 diabetes. A sugar tax is a good start for tackling the obesity problem. Modelling of a 20% subsidy on fruits and vegetables in New Zealand estimated this could result in 560 DPP (Deaths Prevented or Postponed) per year based on 1.9% reduction of all-cause mortality[xvi]. PROS: We know that there is an obesity problem in the UK and that sugar (in addition to other foods stuff) is therefore bad for our health. A new tax on drinks with lots of sugar in them is trying to tackle obesity, especially in children. ... 100,000: Why is the UK's death toll so bad? Most people in the UK are now obese or overweight. Sugar sweetened beverages are a common target for food taxes because they provide energy with little or no associated nutrients[vi]. A 20 percent (or more) reduction would have significant impact on caloric intake and reduce risk for noncommunicable diseases. Excess consumption of sugar is linked to several health problems, such as obesity, diabetes, and tooth decay. The possibility of regulating for obesity prevention—understanding regulation in the Commonwealth Government. Of course modelling is always based on assumptions and these may not play out in the reality of implementation. Our intake has declined since 1995, both in the number of people drinking them and the amount they drink. Overall, food taxes are seen as punishing bad eating behaviour rather than rewarding good choices and are politically unpopular. 2010;100(2):216-222. doi:10.2105/AJPH.2008.151415. 2013 Feb;14(2):110-28 Available at URL. A recent secondary analysis of the 2011-12 Australian Health Survey conducted by the CSIRO [i] shows that across the population, SSBs contributed 3.2% total energy intake. The Chief Medical Officer also hinted that a sugar tax may be necessary. The BBC has written a good explanation of how the sugar tax will work in the UK. A sugar tax is a tax on sugary drinks, also called a Sugar Sweetened Beverage Tax (SSBT). no. Junk Food Tax Pros and Cons A junk food tax is designed to make unhealthy foods more expensive to purchase which in turn is suppose to decrease the growing obesity rate in the country. Don’t think that just because Jamie Oliver supports it, that having a sugar tax is a new concept. In this article, we take a look at some of the sugar tax pros and cons uk. The argument is that a fat tax would encourage healthier eating and raise revenue to be spent on public health care. Just because Income Tax is an amendment doesn't mean we are forced to use it. The only slight difference is that the base of a tax on added sugar would be … From Friday (6 April 2018), millions of children across the UK will benefit from the government’s key milestone in tackling childhood obesity, as … Even taking into account declines in consumption, they estimate the revenue collected from the tax would be more than A$400m annually which could be “put towards health promotion activities, or used to subsidise healthy foods”. When the tax starts in the UK in April, there will be two bands – one for sugar content above 5g per 100ml and a second, higher tax on drinks containing more than 8g of sugar per 100ml. 1. Veerman JL, Sacks G, Antonopoulos N, Martin J (2016) The Impact of a Tax on Sugar-Sweetened Beverages on Health and Health Care Costs: A Modelling Study. Our analysis of the pros and cons of different tax designs applies almost identically to taxes on added sugar as to taxes on total sugar. Plus, the proceeds from the tax would generally be used to promote healthy foods leading to a “win-win” according to its proponents. The pros and cons of franchising in South Africa Next article. 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 report suggests raising the prices on sugar-sweetened beverages (SSB) by 20 percent would lead to a “more than proportional” reduction in SSB consumption. Reduce use of the unhealthy items by increasing the associated cost, and 2. As we have repeatedly seen, the elasticity of demand for tobacco is low; any increase in the tax rate will cause the smokers to switch to smuggled, counterfeit brands.

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