Australian Health Advocates Push for Soda Sugar Tax

Meanwhile, a new Indian study advocates adding a 20% excise tax to sweetened drinks.

January 10, 2014

CANBERRA, Australian Capital Territory – Australia’s three largest health groups have started pressing for a tax on high-sugar soft drinks to combat the nation’s obesity, The Australian reports. Mexico recently added a 10% tax on soda sold within its borders.

The Heart Foundation, Cancer Council and Diabetes Australia have targeted sugar-sweetened beverages, including soda, fruit juice, sports drinks and flavored milk, to receive a tax and regulations similar to alcohol and tobacco. The health advocates claim the tax would lower consumption of sugar, which would trigger a lower number of obesity-related diseases over the next 10 years.

“This is not some simplistic notion of a food nanny or diet gurus,” said Greg Johnson, CEO of the Diabetes Australia. “Sugar tax is not quite the right phrase but, if we look at sugar-sweetened beverage consumption, we are in the top end of consumption in the world, and it makes sense to tax and regulate their promotion and marketing.”

Opponents have countered that taxing specific beverages could “demonize” drinks and food. “It didn't work a decade ago with ‘avoid fat’ and won't work now with ‘tax sugar,’” said Geoff Parker, CEO of the Australian Beverage Council. He added that three of the top selling sodas have no or low-sugar. “This clearly points out such a tax would be misguided.”

Across the ocean in India, a new study by the Public Health Foundation of India (PHFI) showed that a 20% additional excise tax on sweetened beverages would curb obesity in that country, the Times of India reports. Currently, those drinks have a 30% excise fee.

“The incidence of obesity and diabetes is increasing across India, especially among women and children,” said Dr. Sutapa Agarwal, who co-authored the study. “One factor responsible for this is the easy access to soft drinks.”

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