Health Related Taxes on Foods and Beverages

Over-consumption of foods and beverages high in fat, sugar and salt content, associated with heightened risk for obesity and diet-related non-communicable diseases (NCDs),is one of the biggest public health problems facing the UK. It is not only a worry for people who suffer from limiting conditions such as diabetes, types of cancers, cardiovascular and coronary heart disease, but it is also worrying for all tax payers whose revenues go towards covering the costs of obesity and related NCDs to the NHS and the welfare system. Increasing the price of unhealthy foods and beverages through taxes is a potential policy measure to discourage over-consumption. This type of health-related food and beverage tax is already applied in Finland, France, Hungary, and Mexico. Preliminary evidence from existing taxes on food and beverages suggests that these have been effective in reducing purchases, but the long-run impact on consumption and population health is yet to be evaluated. The debate on such taxes in the UK is ongoing. Several organisations have called for a 20% or 20p per litre tax on sugar-sweetened beverages (SSB)while both Conservative and Labour party representatives stated in 2014 no intentions of introducing a tax on SSBs or sugar. The food industry remains firm that taxes are unnecessary and numerous companies have pledged to compromise with voluntary agreements such as restricting food marketing to children, reformulating products, modifying food labels and promoting healthy eating guidelines. The effectiveness of the tax in reducing consumption of unhealthy foods and beverages depends on its design. If tax rates are low, the tax base narrowly specified and taxes are levied upon products that are relatively cheap, the impact will be small. A higher tax rate, combined with gradual increases, and a broader tax base will result in a larger impact on consumption and has thus greater potential to influence health. However, proposals for such taxes are also likely to face even greater opposition from the food and beverage industry. Taxes on unhealthy foods and beverages alone will not solve nutrition-related health problems. However, if well designed and communicated, in combination with other relevant policy measures, taxes can contribute to improved population health. If taxes are to be pursued to fight obesity and non-communicable diseases, itis necessary that other regulatory measures and novel voluntary actions by food producers and food retailers continue to be developed and implemented