1 in 9 Adults Living With Diabetes
By 2050, it’s projected that 900 million people will live with diabetes.
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Globally, the consumption of sweetened beverages (SB) has increased significantly, especially among children. This troubling trend has contributed to increased rates in obesity and other NCDs and created significant health and economic costs. This is why countries are increasingly looking to SB taxes as a cost-effective measure to discourage the consumption of unhealth drinks.
The global evidence is clear: SB taxes can reduce their consumption and improve public health. This is why more than 100 countries have enacted SB taxes. Yet, research analyzing SB taxes post-implementation highlights that the public health impact of SB taxes hinges on its design: taxes with rates that are too low, that exclude key categories of unhealthy drinks or that do not reinvest the revenue toward health fail to reach their maximum impact. These findings highlight why it’s important to revisit and strengthen tax designs to ensure they meet the highest public health standards.
This position paper outlines bold recommendations and elements needed to design an effective and robust SB tax that can fully deliver on its public health objective. These best practices are informed by country experiences where SB taxes have been implemented. Because SB industry interference is a major barrier to advancing SB taxes, the paper also documents how their tactics delay or weaken SB taxes. It shares why governments must prioritize public interests and manage conflict of interest from the industry to protect public health. These recommendations can help decision-makers and advocates develop and implement effective SB taxes within their own country context.
This position paper was developed in partnership with Colansa (Latin American and Caribbean Nutrition and Health Community of Practice), the Center for Science in the Public Interest (CSPI), the Global Center for Legal Innovation on Food Environments and Vital Strategies.
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Understand the country context, especially the economic and legal systems and political environment.
Decrease the consumption of all SBs, including those with any amount of sugar or NSS as the objective.
Include tax within a law that provides a comprehensive definition of the beverages, covering all forms of SBs.
Apply excise taxes, which are considered the best practice as a fiscal instrument for public health purposes.
Use a volumetric design because it ensures the tax includes all unhealthy SBs to avoid industry reformulation tactics and ease its implementation.
Set a tax rate that increases SB prices by 50-percent with automatic adjustment for inflation and income.
Consider earmarking to meet public health goals for the community.
By 2050, it’s projected that 900 million people will live with diabetes.
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From 1990 to 2018, the global consumption of SBs increased significantly, with a notable rise among children, raising health concerns.
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Estimated global deaths attributed to SBs in 2010.
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Most countries fall short of WHO tax rate recommendations, demonstrating the need for better designed SB taxes.
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