Modern Australian
Men's Weekly

.

Don't believe the myths – taxing sugary drinks makes us drink less of it

  • Written by Gary Sacks, Associate Professor, Deakin University

This year’s Australian of the Year, Dr James Muecke, is an eye specialist with a clear vision. He wants to change the way the world looks at sugar and the debilitating consequences of diabetes, which include blindness.

Muecke is pushing for Scott Morrison’s government to enact a tax on sugary drinks to help make that a reality.

Such a tax would increase the price of soft drinks, juices and other sugary drinks by around 20%. The money raised could be used to fund health promotion programs around the country.

The evidence backing his calls is strong.

Read more: A sugary drinks tax could recoup some of the costs of obesity while preventing it

Taxes on sugary drinks work

Several governments around the world have adopted taxes on sugary drinks in recent years. The evidence is clear: they work.

Last year, a summary of 17 studies found health taxes on sugary drinks implemented in Berkeley and other places in the United States, Mexico, Chile, France and Spain reduced both purchases and consumption of sugary drinks.

Reliable evidence from around the world tells us a 10% tax reduces sugary drink intakes by around 10%.

The United Kingdom soft drink tax has also been making headlines recently. Since its introduction, the amount of sugar in drinks has decreased by almost 30%, and six out of ten leading drink companies have dropped the sugar content of more than 50% of their drinks.

Read more: Sugary drinks tax is working – now it's time to target cakes, biscuits and snacks

In Australia, modelling studies have shown a 20% health tax on sugary drinks is likely to save almost A$2 billion in healthcare costs over the lifetime of the population by preventing diet-related diseases like diabetes, heart disease and several cancers.

This is over and above the cost benefits of preventing dental health issues linked to consumption of sugary drinks.

Most of the health benefits (nearly 50%) would occur among those living in the lowest socioeconomic circumstances.

A 20% health tax on sugary drinks would also raise over A$600 million to invest back into the health of Australians.

Don't believe the myths – taxing sugary drinks makes us drink less of it After sugar taxes are introduced, people tend to switch from sugar drinks to other product lines, such as bottled water and artificially sweetened drinks. l i g h t p o e t/Shutterstock

So what’s the problem?

The soft drink industry uses every trick in the book to try to convince politicians a tax on sugary drinks is bad policy.

Here are our responses to some common arguments against these taxes:

Myth 1: Sugary drink taxes unfairly disadvantage the poor

It’s true people on lower incomes would feel the pinch from higher prices on sugary drinks. A 20% tax on sugary drinks in Australia would cost people from low socioeconomic households about A$35 extra per year. But this is just A$4 higher than the cost to the wealthiest households.

Importantly, poorer households are likely to get the biggest health benefits and long-term health care savings.

What’s more, the money raised from the tax could be targeted towards reducing health inequalities.

Read more: Australian sugary drinks tax could prevent thousands of heart attacks and strokes and save 1,600 lives

Myth 2: Sugary drink taxes would result in job losses

Multiple studies have shown no job losses resulted from taxes on sugar drinks in Mexico and the United States.

This is in contrast to some industry-sponsored studies that try to make the case otherwise.

In Australia, job losses from such a tax are likely to be minimal. The total demand for drinks by Australian manufacturers is unlikely to change substantially because consumers would likely switch from sugary drinks to other product lines, such as bottled water and artificially sweetened drinks.

Don't believe the myths – taxing sugary drinks makes us drink less of it A tax on sugary drinks is unlikely to cost jobs. Successo images/Shutterstock

Despite industry protestations, an Australian tax would have minimal impact on sugar farmers. This is because 80% of our locally grown sugar is exported. Only a small amount of Australian sugar goes to sugary drinks, and the expected 1% drop in demand would be traded elsewhere.

Myth 3: People don’t support health taxes on sugary drinks

There is widespread support for a tax on sugary drinks from major health and consumer groups in Australia.

In addition, a national survey conducted in 2017 showed 77% of Australians supported a tax on sugary drinks, if the proceeds were used to fund obesity prevention.

Myth 4: People will just swap to other unhealthy products, so a tax is useless

Taxes, or levies, can be designed to avoid substitution to unhealthy products by covering a broad range of sugary drink options, including soft drinks, energy drinks and sports drinks.

There is also evidence that shows people switch to water in response to sugary drinks taxes.

Read more: Sweet power: the politics of sugar, sugary drinks and poor nutrition in Australia

Myth 5: There’s no evidence sugary drink taxes reduce obesity or diabetes

Because of the multiple drivers of obesity, it’s difficult to isolate the impact of a single measure. Indeed, we need a comprehensive policy approach to address the problem. That’s why Dr Muecke is calling for a tax on sugary drinks alongside improved food labelling and marketing regulations.

Towards better food policies

The Morrison government has previously and repeatedly rejected pushes for a tax on sugary drinks.

But Australian governments are currently developing a National Obesity Strategy, making it the ideal time to revisit this issue.

We need to stop letting myths get in the way of evidence-backed health policies. Let’s listen to Dr Muecke – he who knows all too well the devastating effects of products packed full of sugar.

Authors: Gary Sacks, Associate Professor, Deakin University

Read more https://theconversation.com/dont-believe-the-myths-taxing-sugary-drinks-makes-us-drink-less-of-it-130694

Why Year 12 Tutoring Plays A Crucial Role In Academic Success

The final year of school is one of the most demanding periods in a student’s academic journey, which is why year 12 tutoring has become an essent...

Legal Remedies Available in a Breach of Contract Case

When a contract is broken, the consequences can affect cash flow, reputation and ongoing business relationships. A breach of contract may occur when...

Long Weekend Camping in the Yarra Ranges: Three Weekends of High Country Adventure

Yarra Ranges National Park, Victoria. Image by Mattinbgn (talk · contribs), CC BY 3.0, via Wikimedia CommonsVictoria’s Yarra Ranges offer keen trav...

Why Waste Management Solutions Are Essential For Modern Businesses

Managing waste responsibly has become a critical priority for organisations of all sizes, which is why waste management solutions play such an impo...

The Importance and Varieties of Ride-On Mower Tyres

Ride-on mowers are built to manage larger lawns with consistency and control. The quality and design of ride on mower tyres play a critical role in ...

Gain Peace Of Mind: The Undeniable Benefits Of A Ready First Aid Kit

Life in our vibrant communities, whether it's the bustling city or the quiet country town, is full of unexpected moments. From a scraped knee on the...

The Most Common Conveyor System Issues in Manufacturing

In modern manufacturing, conveyor systems play a central role in keeping production lines efficient, consistent, and cost-effective. When they operate...

How to Secure a Long-Term Rental in a Competitive Market

The rental market can be unpredictable and may present challenges if you’re not prepared. Initially, you might submit numerous applications and stil...

What Smart Investors Know About Real Estate

Many people think investing in property is just about buying a house and waiting for it to get expensive. While that can happen, the people who actual...

The Benefits of Seeking Help for Anxiety and Stress

Anxiety and stress have become common experiences in today’s fast-paced world, affecting people across all ages and lifestyles. From work pressures ...

How to Make the Most of Fashion Wholesale Options for Your Brand

If you want to grow a fashion brand without constantly reinventing the wheel, wholesale can be one of the smartest ways to scale. The key is knowing h...

How to Add Value to Your Home Before Selling

Selling a home is not just about putting up a sign and waiting for offers. It is about presenting a property that buyers instantly connect with and ar...

How Outdoor Play Enhances Learning and Wellbeing

You don’t need to be an expert to conclude that play is an essential part of growing up. When children aren’t restricted and kept indoors, they de...

How to Build Passive Income Through Real Estate

Building passive income is one of the most effective ways to create long-term financial security. While there are many investment opportunities availa...

DIY Guide to Replacing Small Parts in Your Laundry Machine

Finding a puddle or a broken washer is frustrating, but you don’t always need a professional. Many common issues are caused by tiny parts that are c...

Best Practices for Managing Your Warehouse Partner Relationships

Your warehouse partner is an important part of your business. They sit in the middle of your promises to customers. Yet, when they deliver what’s pr...

Benefits of Solar-Based Water Circulation Systems

Imagine your water system running all day without touching your electricity bill. No noise, no heavy cables, no stress when prices go up. Fantastic, r...

Benefits of Using an Outrigger Crane for Complex Lifts

Complex lifts aren’t the kind of jobs you improvise. You’re dealing with awkward shapes, serious weight, and sites that never seem designed for wh...