“Taxing sugary products is good for your health”
Taxing sugary products, is it good for your health? What about it? The Pilgrim deciphers the subject for you.
- The National Assembly attacks junk food. Monday November 4, 2024, the last day of debates on the Social Security budget for the year 2025, deputies increased the tax on sodas and adopted another on added sugars in processed food products. In a country where 65 liters of soda are consumed per person each year and where 47% of residents suffer from obesity or overweight, this is an obvious public health objective. But is taxing sugary products effective?
- The “soda tax” has existed in France since 2012. Hardened in 2018, it has not really slowed down sales. Too low, the price increase it caused never dissuaded the consumer. It also failed to force manufacturers to modify their recipes. Over the period 2014 – 2019, the quantity of sugar had only decreased significantly in 5% of sodas. However, the principle seemed simple: the higher the sugar content, the higher the tax.
- To have real influence, the tax must be applied more simply. Currently, it has sixteen levels depending on the level of sugar contained in the drinks, which makes it too complex for companies to react. The new version intends to clarify things, imitating that in force in the United Kingdom. Across the Channel, where the law defines only three tax brackets since 2018, the proportion of drinks falling into the two sweetest categories has decreased by 40%.
- To change consumer habits, you have to hit harder. In Philadelphia, in the United States, a tax equivalent to 50 euro cents per liter on sugary drinks caused a 38% drop in sales over one year. The same phenomenon was observed in Mexico, to a lesser extent, thanks to a tax equal to 10% of the price of the bottle.
- For sweet products other than drinks, subject of the second amendment passed last week, the effect remains uncertain, as few countries have already implemented this provision. But one thing is certain, in these times of budgetary drift, these new taxes will help reduce the public deficit. The “soda tax” brought in 443 million euros to the State in 2023, and its revenue continues to increase.
