BevSA response to proposed sugar tax
W e are extremely disappointed by today’s budget announcement of a discriminatory tax on sugar-sweetened beverages. If the Minister’s indicated intention is to “curb excessive sugar intake” then the evidence – from other markets that have taken this path and adopted such measures – indicates that this initiative will surely fail, as we have seen.
There is mounting data showing that taxing one small part of consumers’ daily diet – sugar-sweetened beverages represent less than 10% of daily caloric intake – will not result in any significant decrease in overall sugar consumption. The recent ITAM report on the tax on sugar-sweetened beverages in Mexico, for example, revealed a minimal reduction of actual calories consumed. When accounting for the real-world substitution of other foods containing sugar, experts estimate a maximum reduction of 6 calories realized in the daily diet.