Currently browsing posts about: Taxes

The Global Health Advocacy Incubator (GHAI) has issued this new report.  It’s well worth a look.

By now, soda taxes are well established to decrease consumption and raise revenues that can be used for social purposes.  As you might imagine, the soda industry does not like such taxes.  As the report explains,

Recently, Big Soda has adapted their [the cigarette industry’s] playbook and shifted their approach from outrightly opposing SB [sugary beverage] taxes to favoring weaker SB tax standards. This report highlights different actions and narratives employed by the industry and demonstrates how these strategies follow a global playbook, including:

1. Proposing weaker taxes tailored to favor industry interests at the risk of public health.

2. Threatening and challenging governments that have passed an SB tax.

3.  Delegitimizing evidence to distort perceptions about SB taxes.

4.  Stigmatizing SB taxes through economic arguments.

5.  Taking advantage of and using vulnerable populations and environmental concerns to avoid the SB tax.

Under Strategy #5, for example, the report provides this information:

The report offers advice about how to counter industry measures by “(1) protecting the tax design to ensure it will have an optimal public health outcome, (2) safeguarding the policy decision-making process from undue influence and (3) leveraging opportunities for civil society to defend SB taxes.

For example, to safeguard policy decisions, it advises:

Avoid participating in public-private partnerships, especially those claiming to mitigate the “economic damages” of the SB tax through false solutions. This is the entry point for corporations to take a seat at the policy-making table and meddle with the design and implementation of the tax.

Soda taxes are up for renewal in Berkeley and are under consideration in Santa Cruz.  Stay tuned.

The World Health Organization has issued guidelines for taxing unhealthy foods: Fiscal Policies to Promote Healthy Diets.

On the basis of current evidence, the WHO recommends:

• Taxes on sugar-sweetened beverages (SSBs)
• Consideration of policies to tax unhealthy foods
• Consideration of policies to subsidize healthy foods

A recent article explains why the recommendation for SSB taxes is so strong: Sweetened Beverage Tax Implementation and Change in Body Mass Index Among Children in Seattle.

• Findings  In this cohort study of 6313 children living in Seattle or a nearby comparison area, a statistically significant reduction in BMI was observed for children in Seattle after the implementation of a sweetened beverage tax compared with well-matched children living in nontaxed comparison areas.
• Meaning  These results suggest that the sweetened beverage tax in Seattle may be associated with a small but reasonable reduction in BMI among children living within the Seattle city limits.

The World Bank is tracking global SSB taxes in a database.

The Global Food Research Program at University of North Carolina also has a database.  It displays the data in maps.

The news here is the recommendation to start working on tax strategies to reduce consumption of unhealthy foods and promote consumption of healthier foods.

Stay tuned!

The UN’s World Health Organization (WHO) has long led efforts to tax unhealthy products, starting with tobacco.

WHO describes its health tax efforts here.

It recently issued Global report on the use of sugar-sweetened beverage taxes, 2023.

The report finds that 108 countries have some kind of tax on sugar-sweetened beverages.

But, it finds

Less than a quarter of countries surveyed account for sugar content when they impose taxes on these non-alcoholic beverage products. Countries with a sufficiently strong tax administrative capacity are encouraged to tax beverages based on sugar content, as it can encourage consumers to substitute with alternatives that have lower sugar content as well as incentivize the industry to reformulate beverages to contain less sugar.

One of its major overall findings:

Among its conclusions are these:

• Existing taxes on SSBs could be further leveraged to decrease affordability and thereby reduce consumption. While other perspectives and competing factors have to be accounted for when designing taxation policies, the protection of health should be a key consideration, particularly considering the health and economic burden associated with obesity and diet-related NCDs.
• This report concludes that excise taxes on SSBs are not currently being used to their fullest potential. Improving tax policy and increasing taxes so that SSBs become less affordable should be pursued more systematically by countries in order to effectively reduce consumption and prevent and control diet-related NCDs, including obesity and dental caries.

Here’s the evidence.  Get to work!

Resoures

• More about WHO’s work on health taxes
• Global report on the use of alcohol taxes, 2023
• WHO technical manual on alcohol tax policy and administration
• Health taxes database

For your calendar today at 6:30 pm EST:

*****

The World Health Organization has taken a major step: it calls on member countries to tax sugar-sweetened beverages.

“Taxes on sugar-sweetened beverages can be a powerful tool to promote health because they save lives and prevent disease, while advancing health equity and mobilizing revenue for countries that could be used to realize universal health coverage,” said Dr Ruediger Krech, Director of Health Promotion at WHO.

SSB, tobacco, and alcohol taxes have proven to be cost-effective ways of preventing diseases, injuries, and premature mortality. SSB tax can also encourage companies to reformulate their products to reduce sugar content.

More than that, WHO has produced a manual on how to develop and implement SSB taxation policies.

This tax manual is a practical guide for policy-makers and others involved in SSB tax policy development to promote healthy diets and populations. It features summaries and case studies of SSB global taxation evidence, and provides support on the policy-cycle development process to implement SSB taxation — from problem identification and situation analysis through policy design, development and implementation to the monitoring and evaluation phase. Additionally, the manual identifies and debunks industry tactics designed to dissuade policy-makers from implementing these taxes.

SSB taxes can be a win-win-win strategy: a win for public health (and averted health-care costs), a win for government revenue, and a win for health equity.

The manual summarizes everything anyone needs to know to justify taxes and to craft policy.  Get to work!

********

For 30% off, go to www.ucpress.edu/9780520384156.  Use code 21W2240 at checkout.

We have Healthy Food America and the University of Washington, the UCONN Rudd Center for Food Policy & Health, and the Public Health Law Center at Mitchell Hamline School of Law to thank for this guide to tax legislation that will promote health and racial equity.

The report:

• Reviews tax laws proposed and achieved in the US
• Summarizes the experience of advocates and policymakers
• Examines approaches used in alcohol, tobacco, and cannabis taxes
• Recommends how to draft legislation to promote equity

The full report: Investing Sweetened Beverage Tax Revenues to Advance Equity: Recommendations for Drafting Legislation

The brief report is here.

An infographic provides a quick overview.

Other supporting materials are available on the Healthy Food America website.

Want to give this a try?  Here’s how.

Here’s a report from the World Health Organization on the effects of taxing sugar-sweetened beverages.

The study:

Consumption of SSBs is associated with increased risk of overweight and obesity (5), cardiovascular events (6), hypertension (7) and diabetes (8). There is now substantial evidence that SSB taxes can both discourage consumption and encourage reformulation (9,10). SSB taxes have also been found to have positive impacts on population weight and to potentially have greater health benefits among lower socioeconomic populations (11,12)….This study takes a policy analysis lens to studying SSB tax adoption and implementation in the WHO European Region. The focus was on the politicoeconomic and stakeholder dynamics in cross-sectoral policy-making, as well as considering adaptation in policy design.

https://www.euro.who.int/en/health-topics/disease-prevention/nutrition/publications/2022/sugar-sweetened-beverage-taxes-in-the-who-european-region-success-through-lessons-learned-and-challenges-faced-2022

https://www.euro.who.int/en/health-topics/disease-prevention/nutrition/publications/2022/sugar-sweetened-beverage-taxes-in-the-who-european-region-success-through-lessons-learned-and-challenges-faced-2022

• Be adapted to a country’s legislative, fiscal, economic and health context.
• Be designed and implemented through collaboration between finance and health policy-makers.
• Take revenues into consideration.
• Expect opposition from industry.

On this last point, the report says:

SSB taxes were strongly opposed by actors in the food and beverage industry in all the study countries, before and after  implementation. Industry made strong public statements regarding the negative economic impact that the tax would have on industry, particularly in relation to employment. In Finland, France, Hungary, Ireland and Portugal, they also argued that the tax would be regressive and, therefore, have a negative impact on consumers. In Belgium, Finland, France and Hungary (notably, these were earlier taxes), industry actors raised concerns that the tax singled out beverages and/or the beverage industry for differential taxation. Industry actors also presented a range of arguments regarding the taxes being ineffective and poorly designed.

Soda tax advocates need strategies to counter this opposition.  Plenty are available.  See the toolkit at Healthy Food America, for example.

I received a notification of the output of a research team at the University of Illinois Chicago (UIC), which did an evaluation of local soda taxes. Its products and resources are available at UIC Policy, Practice and Prevention Research Center (P3RC).

Among these are research briefs summarizing the available evidence base of U.S. sweetened beverage tax studies.

1. Chriqui JF, Pipito AA, Asada Y, Powell LM. Lessons learned from the adoption and implementation of sweetened beverage taxes in the United States: A narrative review. Research Brief No. 119. Policy, Practice and Prevention Research Center, University of Illinois Chicago. Chicago, IL. June 2021.
2. Powell LM, Marinello S, Leider J. A Review and Meta-analysis of Tax Pass-through of Local Sugar-Sweetened Beverage Taxes in the United States. Research Brief No. 120. Policy, Practice and Prevention Research Center, University of Illinois Chicago. Chicago, IL. July 2021.
3. Powell LM, Marinello S, Leider J, Andreyeva T. A Review and Meta-analysis of the Impact of Local U.S. Sugar-sweetened Beverage Taxes on Demand. Research Brief No. 121. Policy, Practice and Prevention Research Center, University of Illinois Chicago. Chicago, IL. August 2021.
4. Marinello S, Powell LM. A Review of the Labor Market Impacts of Local Sugar-Sweetened Beverage Taxes in the United States. Research Brief No. 122. Policy, Practice and Prevention Research Center, University of Illinois Chicago. Chicago, IL. September 2021.
5. Leider J, Oddo VM, Powell LM. A Review of the Effects of U.S. Local Sugar-Sweetened Beverage Taxes on Substitution to Untaxed Beverages and Food Items. Research Brief No. 123. Policy, Practice and Prevention Research Center, University of Illinois Chicago. Chicago, IL. November 2021.

An excellent source of information about soda taxes is available at Healthy Food America

• Research Watch
• Soda tax toolkit
• Compare tax policies
• Map the movement
• Publications

And let’s not forget the Pan-American Health Organization (PAHO)’s terrific report on soda taxes in Latin America.

The Pan-American Health Organization (PAHO) has produced a report on soda taxes in the region.

What’s happening with soda taxes in Latin America is impressive.

Soda taxes, no matter where they are, seem to be doing what they are supposed to:

Latin America is a model for Dietary Guidelines (Brazil) and front-of-package warning labels (Chile).

Wish we could do these things.