Sugar-sweetened beverage (SSB) taxes are a promising policy approach to reduce SSB consumption, which is linked to several adverse health conditions. Seven cities and counties in the United States have imposed taxes on sweetened beverages that range from 1 to 2 cents per ounce.
Are sugar-sweetened beverages taxed?
No state currently has an excise tax on sugar-sweetened beverages. … Tax rates are 1 cent per ounce in all four California jurisdictions, 1.5 cents per ounce in Philadelphia, 1.75 cents per ounce in Seattle, and 2 cents per ounce in Boulder.
Who tax on sugary drinks?
No state currently has an excise tax on sugar-sweetened beverages. Instead, soda taxes are levied locally in Boulder, Colorado; the District of Columbia; Philadelphia, Pennsylvania; Seattle, Washington; and four California cities: Albany, Berkeley, Oakland, and San Francisco.
What is the sugar tax in Ireland?
The sugar tax, although long-mooted, was first introduced by the government in Budget 2018. It didn’t come into effect, however, until 1 May 2018. It works out as roughly 25-30c on a litre of popular soft drinks. It means that a can of Coca-Cola increased by around 10c.
Should we tax sugary sodas at a higher tax rate?
A tax on sugary drinks can help: Raises revenue for important programs like healthier food in schools, increasing access to healthy food for low income people, initiatives to prevent diabetes and other chronic diseases, education campaigns about sugary drinks and healthy eating, and universal pre-k.
Why is sugar tax a bad idea?
Excess consumption of sugar is linked to several health problems, such as obesity, diabetes, and tooth decay. Consumption of sugar imposes costs on individuals (lower life expectancy) and the rest of society (higher health care costs + lower productivity).
Is a sugar tax effective?
Taxation on sugary drinks is an effective intervention to reduce sugar consumption (8). 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).
How much is a sugar tax?
Manufacturers of soft drinks containing more than 5g of sugar per 100ml have been made to pay a levy of 18p a litre to the Treasury, or 24p a litre for sugar content over 8g per 100ml, since the tax came into force in April 2018.
Will a sugar tax help reduce obesity?
As a result, they write, obesity rates in the U.S. would drop by an additional 630,000 adults, and 11,000 fewer people per year would develop diabetes. …
What does the sugar tax apply to?
The sugar tax is a levy put on drinks companies to crack down on high sugar levels in soft drinks. Companies are now taxed according to the sugar content of their wares. One is for drinks with a total sugar content of more than 5g per 100ml, while a second, higher levy is imposed on drinks with 8g per 100ml or more.
What products have sugar tax?
Officially called the Soft Drinks Industry Levy (SDIL), the tax puts a charge of 24p on drinks containing 8g of sugar per 100ml and 18p a litre on those with 5-8g of sugar per 100ml, directly payable by manufacturers to HM Revenue and Customs (HMRC).
Where does the money from the sugar tax go?
Funds raised from the sugar tax are earmarked for spending on school sports programmes and breakfast clubs, as part of wider efforts to combat childhood obesity.
What drinks are exempt from sugar tax?
A soft drink that contains 5-8g of sugar per 100ml is taxed at 18p per litre, with a sugary drink above 8g per 100ml being taxed at 24p per litre. Fruit juices and milk-based drinks are currently exempt from the taxes on the grounds that their sugar is naturally occurring.
Why the soda tax is good?
Soda Taxes Are a ‘No-Brainer’ for Public Health, Says the Author of a New Study on Them. A new JAMA study suggests taxing sugary drinks really can make people buy fewer of them, potentially translating to better public health.
Who pays the soda tax?
The soda tax is similar to and in addition to a sales tax on certain sugar-sweetened beverages. Distributors are typically responsible for paying the tax, but the cost trickles down to increased prices for consumers. Eight cities collected a soda tax as of 2020, and four of them are in California.