Sugary drinks tax

A sugary drinks tax or soda tax is a tax or surcharge designed to reduce consumption of drinks with added sugar. Drinks covered under a soda tax often include, carbonated drinks, uncarbonated drinks, sports drinks and energy drinks.

The tax is a matter of public debate in many countries and beverage producers like Coca-Cola often oppose. Advocates such as national medical associations and the World Health Organization (WHO) promote the tax as an example of Pigovian taxation, aimed to discourage unhealthy diets and offset the growing economic costs of obesity.

Diabetes is a growing health concern in many developed and developing countries around the world, with 1.5 million deaths directly due to diabetes in 2012 alone. Unlike sugar from food, the sugar from drinks enters the body quickly, which can overload the pancreas and the liver, leading to diabetes and heart disease over time.

Obesity is also a global public and health policy concern, with the percentage of overweight and obese people in many developed and middle income countries rising rapidly. Consumption of added sugar in sugar-sweetened beverages has been positively correlated with high calorie intake, and through it, with excess weight and obesity. Added sugar is a common feature of many processed and convenience foods such as breakfast cereals, chocolate, ice cream, biscuits, yoghurts and drinks produced by retailers such as Starbucks. The ubiquity of sugar-sweetened beverages and their appeal to younger consumers has made their consumption a subject of particular concern by public health professionals. In both the United States and the United Kingdom, sugar sweetened drinks are the top calorie source in teenage diets.

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