Taxes on sugar-sweetened drinks drive decline in consumption: Study

A new study by researchers at UC Berkeley and elsewhere reveals that after excise taxes have been positioned on sugary drinks, purchases declined dramatically and steadily throughout 5 American cities. The findings have been printed in JAMA Well being Discussion board.

Though different research have evaluated the impression of beverage excise taxes—taxes on a per ounce foundation–in a single metropolis, this is without doubt one of the first that estimates the impression of native excise taxes on purchases and costs of sugar-sweetened drinks throughout a number of massive cities. The cities included Boulder, Philadelphia, Oakland, Seattle, and San Francisco, all of which carried out taxes between January 1, 2017, and January 1, 2018.

Sugar-sweetened drinks—reminiscent of sodas, fruit drinks, sports activities drinks, power drinks, and sweetened espresso drinks—are the main supply of added sugars within the American weight-reduction plan, in accordance with the Facilities for Illness Management and Prevention. They’re related to critical unfavourable well being outcomes, together with sort 2 diabetes, weight problems, coronary heart illness, kidney illness, non-alcoholic liver illness, gum illness, tooth decay, and different circumstances.

Taxes on some of these drinks are promoted as a key coverage to carry beverage corporations accountable for and cut back the well being harms related to their merchandise, however complete analyses of such taxes have been tough because of the absence of sufficiently massive samples of knowledge and methodological limitations.

“Estimating a extra normal, extra correct impression of native sugar-sweetened beverage taxes within the US offers better perception into the general effectiveness of those taxes,” stated examine lead writer, Scott Kaplan, who’s an economics professor at the US Naval Academy. Kaplan acquired his Ph.D. from the UC Berkeley Division of Agricultural and Useful resource Economics in 2021. “This examine could higher inform the potential effectiveness of SSB taxes on the state or federal stage.”

This new examine builds on an earlier examine that regarded solely at information from town of Oakland.

The brand new examine discovered that retail costs of sugar-sweetened drinks elevated by 33.1% over the 2 years following tax implementation in every metropolis studied, and that there was a corresponding lower in purchases of 33% over the identical timeframe. The value improve and buy decreases appeared instantly after the taxes have been carried out and continued to be sustained months later.

On the identical time, there was no proof that buyers have been touring to bordering areas with out sweetened beverage taxes to make purchases there.

This examine’s findings counsel that “these taxes are fairly efficient when it comes to well being outcomes and societal cost-savings,” stated Kaplan. He hopes this may occasionally result in related coverage motion in different places throughout the nation, and on the state and nationwide ranges, as was accomplished with tobacco taxes.

A previous study co-authored by Dr. Kristine A. Madsen of UC Berkeley Faculty of Public Well being confirmed that tax income from sugar-sweetened beverage (SSB) excise in seven cities have been used to assist initiatives to enhance neighborhood well being, develop human and neighborhood capital, and advance fairness.