Meta Description: This essay discusses the idea of taxing unhealthy drinks. There is a good chance that a consumer will buy a lower-priced option, especially in the case of low-income consumers.
Introduction
Diets, fitness centres, health food — all point toward the desire to get fitter. An increasing number of people are struggling with excess weight. A significant contributor to weight gain and subsequent health complications is consuming junk food combined with sugary drinks. Although it may not be the solution, levying a heavy tax on sodas and sugary drinks might force people to reconsider their food habits.
What is Wrong With Sodas?
We consume extra calories (with zero nutrition) with just one soft drink can. The recommended daily intake of sugar for women is around 24 grams (or six teaspoons), while that for men is 36 grams (9 teaspoons). If you have just one can, you consume around 40 grams or 10 teaspoons of sugar! This is 40 per cent above the recommended intake for women. Consumption of sugar over the suggested quantity leads to weight gain since these contain empty calories with no nutritional benefits. It also leads to tooth decay. Guidelines by the World Health Organisation (WHO) suggest that these health risks can be avoided by limiting sugar consumption to 10 per cent of our daily energy intake.
How Can Taxes Help?
Extra taxes on unhealthy sodas and sugary drinks make these costlier. There is a good chance that the consumer will buy a lower-priced option, especially in the case of low-income consumers for whom affording health care is becoming more complex. Data collected by the WHO shows that an increase in taxes does correspond to a change in buying patterns among consumers.
In India, sugary sodas currently attract a 40 per cent tax. Beverages with added fruit pulp attract only a 12 per cent tax. The UK has a ‘sugar tax’ based on the amount of sugar used, while the USA currently has no national tax policy.
Investment In Public Health
The additional revenue could be reinvested in public health measures, as suggested by the WHO. While the increase in taxes may not affect buying patterns over a short period, the revenues could be used for the public. Mexico, which started taxing beverages with added sugar, raised more than $2.6 billion in the first two years. The country has invested the revenue for installing water fountains in schools.
Frequently Asked Questions
- Why should we tax sugary drinks?
Taxes on such drinks will generate revenue that can be used for public health funding. Discouraging beverages with added sugar will lower the risks of obesity.
- What is the government doing about sugary drinks?
Governments in India, the UK, certain states in the USA, and many countries worldwide levy sugar taxes on carbonated beverages.
- Is taxing sugary drinks effective?
WHO studies have indicated that taxes on sugary beverages are effective.
- Which products fall under the category of sugar-related taxes?
Sugary beverages include carbonated/soft drinks and can include energy or sports drinks with added sugar.
- What are the health risks of sugary drinks?
Having beverages with added sugar leads to obesity and increases the risk of heart and kidney diseases, diabetes, weak bones, and tooth decay.
