Recent polls show that more than 70% of Canadians support a sugary drink tax or levy if revenues were used to support healthy eating initiatives such as the subsidization of vegetables and fruits or a universal school lunch program.
A manufacturers’ levy
A manufacturers levy has been shown to be an effective way to reduce consumption because it:
- Raises the price of sugary drinks, acting as a disincentive to consumers to purchase them
- Encourages manufacturers to reformulate, making their beverages less harmful
- Provides a valuable source of revenue for the health care system
The combined benefit of health care savings and revenue from a 20% sugary drinks levy over 25 years is substantial and projected to be over $55 billion. This money can be spent on healthy living initiatives for Canadian families.
Global Case Studies
|Mexico||2014 excise tax of 1 peso/ounce||average 10% ↓ in sugary drinks purchases|
|Berkeley||2015 $0.01/ounce tax on sugary drink||10% ↓ in sales of taxed beverages. Sales of water ↑15.6% and milk 3.5%↑|
|Finland||2011 with ↑ tax rate each year||Sales ↓ in relation to three tax hikes.|
|France||2012 excise duty on drinks with added sweeteners. Rate ↑over time.||↓ soft drink demand of 3.3% (2012) 3.4% (2013) 15|
2012 “public health tax” for unhealthy
products (high in fat, sugar and salt). Multi-tiered tax based on sugar content
|40% of food/beverage products reformulated to fit into a lower tax bracket. Demand for soft drinks, ↓7.5% (2012), ↓ 6% (2013).|