Sugar Tax and Fast Food Tax

A soda (or sugar) tax or surcharge is designed to reduce consumption of carbonated soft drinks, sports drinks and energy drinks. And a “fast food” tax will apply to unhealthy high calorie foods served in KFCs, McDonald’s and the like.

Coca-Cola has been under fire since 2015 when it was revealed that the Company was funding scientific research to influence favourable response to soda.

Obesity and Type II diabetes are growing health concerns world-wide. In 2015 alone, over 1.6 million deaths were due to diabetes. A 2010 study showed that consuming one to two sugary drinks a day increases your risk of developing diabetes by 26%. Heart disease is also impacted by sugary drinks and fast food. So a sugary tax (and a fast foods tax) is a way to correct consumption of sugary drinks/fast foods.

The UAE introduced a 50% tax on soft drinks and 100% tax on energy drinks. In the UK, the tax is imposed on drinks with sugar content above 5g per 100 millitres at 18p. per litre or 24p. per litre for sugar content above 8g per 100 millilitres.

The arguments against this tax may include:

-it is regressive as it impacts the poor more than the rich; and

-encourages cross-border shopping.

Revenue from the sugary drinks tax and the fast foods tax could be used to subsidise vegetables and fruits, sports activity and healthcare costs.