Sweetend Beverage Tax

Originally posted 01/24/18

We have all seen the latest controversy over the recent tax of on sugary drinks more commonly referred to as sugar sweetened beverage (SSBs) worldwide and the levy as sweetened beverage tax (SBT). Several countries such as Hungary, Mexico and France have implemented country-wide taxation on SSBs. The World Health Organization has recommended taxation of SSBs to curb consumption, calling for a 20% tax which is estimated to reduce consumption by half. The United States has not yet followed suit, but some cities however have implemented their own tax hikes where Seattle is the latest in the controversy with the largest tax to date in the US at 1.75 cents per ounce starting January 2018 with sugar-free beverages being exempt, having learned from Philadelphia’s implementation of 1.5 cent per ounce levy that took effect in January 2017. that encompassed sugar free beverages, juices and milk substitutes.  The Philadelphia SBT is estimated to reduce intake of SSB by 8% in children and additionally the high-quality programs will increase said effectiveness as the program will affect the low-income population which is at increased risk for diet related consequences (Langieller, Le-Scherban, & Purtle, 2017, p. 2450).  Politically, some controversy surrounds SBTs, as these affect the lower income population more, and may as continuing reports in Philadelphia that beverage manufacturers may furlough workers due to decreased SSB demand.

            Cook County, which includes Chicago, begins a 1.5% SBT this year which will affect more than 5 million residents. Given early positive results in Berkley, California, the first large city implementation of SBT – consumption declined by 20% and increased water consumption.

Langellier, A., Le-Scherban, F. & Purtle, J. (2017). Funding quality pre-kindergarten slots with philadelphia’s new ‘sugary drink tax’: Simulating effects of using an excise tax to address a social determinant of health. Public Health Nutrition, 20(13), 2450-2458. doi: 10.1017/S1368980017001756