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Would a ‘Sugar Tax’ on Snacks and Sodas Reduce Obesity?. https://www.healthline.com/health-news/would-a-sugar-tax-on-sodas-and-snacks-help-reduce-obesity. How bad is it?.
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Would a ‘Sugar Tax’ on Snacks and Sodas Reduce Obesity? https://www.healthline.com/health-news/would-a-sugar-tax-on-sodas-and-snacks-help-reduce-obesity
How bad is it? • In the United Kingdom, on average, people buy 78 liters of soda per person each year. That’s about half the 154 liters the average person in the United States buys. • The U.K. places 19th in soda consumption and 7th when it comes to sugar snack consumption. • The U.S. comes in 1st. • Mexico ranks 4th in the world with an average of 136 liters of soda purchased per each person each year .
Goal • The taxed snacks include candy (including chocolate), cookies, and cakes. • A 20% price increase on high-sugar snacks could lead to a 2% decrease in obesity in the United Kingdom in a year. • While this estimation may be too high to happen within a year, similar sugar taxes in Mexico and Hungary have resulted in people buying fewer unhealthy snacks. • Countries with soda taxes have already seen some improvements in reducing obesity. • The effect of the price change is estimated to be the greatest on low-income households with weight issues and smallest in high-income households without those issues.
Price Demand
Outcome • Manufacturers can reformulate their products to avoid the taxes. • In Mexico and Hungary the high sugar taxes has caused changes in the snacks people buy and what the manufacturers put in their snacks. • Mexico’s tax on nonessential energy-dense foods caused people to buy 7 percent less junk food in the second year after the tax went into effect. • Households that had previously purchased the most junk food saw the biggest declines. • In Hungary, people were either eating less of the taxed product or buying healthier products. • Meanwhile, though, soda consumption continues to rise in poorer countries. • Although the taxes have raised prices for sugary products in some countries, soda prices are falling in others. • People could afford to buy 71 percent more Coca-Cola in 2016 than in 1990.