THE EFFECTS OF EXCISE TAX LEVIED ON SUGAR-SWEETENED BEVERAGES ON THE PREVENTION AND CONTROL OF OBESITY

Abstract

The aim of the research is to determine the reasons for introduction of taxation on production/sales of sugar-sweetened beverages, the current global distribution of these excise taxes across tax areas, and their effectiveness from the aspect of lowering prevalence of obesity and its comorbidities. Excise tax on sugar-sweetened beverages is a tax policy instrument used to prevent and control obesity. From clinical, public health and economic aspects, obesity is a very dangerous disease that affects over 600 million people around the world. It is expected that the introduction of excise taxes on sugar-sweetened beverages, and other “nutritionally empty” foods will have positive effects on changes in consumers’ behaviour and the structure of their diet and health. The calories in sugar-sweetened beverages represent a significant source of excessive calories in the diet of a modern man on a global scale and as such lead to the development of obesity. Higher sale prices of taxed beverages should decrease their consumption, consequently diminishing caloric intake, and decrease the prevalence of obesity. Tax revenues can also be used for financing the increasing health care costs in treatment of obesity and its comorbidities, for subsidizing the diet of the poorest population groups and for the production of highly nutritious food. The levying of excise taxes causing a drop in demand of these products would force the producers of sugar-sweetened beverages to improve the quality of their products and change their assortment. The introduction of the excise tax on sugar-sweetened beverages has been disputed, and the opponents question its effects on dietary, health, financial and social sector. Contradictory analysis results of the excise tax efficiency on sugar-sweetened beverages contribute to a burning debate over the introduction of this tax.