Comparing taxes as a percentage of sugar-sweetened beverage prices in Latin America and the Caribbean
File(s)
Published version
Author(s)
Roche, Maxime
Alvarado, Miriam
Sandoval, Rosa Carolina
Gomes, Fabio da Silva
Paraje, Guillermo
Type
Journal Article
Abstract
Background
Excise taxes can be used to reduce the consumption of sugar-sweetened beverages (SSBs), an important preventable risk factor for noncommunicable diseases. This study aimed to compare novel standardized indicators of the level of taxes applied on SSBs as a percentage of the price across beverage categories in Latin America and the Caribbean.
Methods
We used a method developed by the Pan American Health Organization and adapted from the World Health Organization's tobacco tax share. The analysis focused on the most sold brand of five categories of non-alcoholic beverages. Data were collected by surveying ministries of finance and reviewing tax legislation in effect as of March 2019.
Findings
Of the 27 countries analyzed, 17 applied excise taxes on SSBs. Of these, median excise taxes represented the highest share of the price for large sugar-sweetened carbonated drinks (6·5%) and the lowest for energy drinks (2·3%). In countries where excise taxes were applied on bottled waters, tax incidence exceeded the one applied on most SSBs. Overall, excise tax shares were higher in Latin America than in the Caribbean. Including all other indirect taxes (e.g., value added tax), median total tax shares were between 12·8% and 17·5%. At least two countries earmarked part of SSB excise tax revenues for health purposes.
Interpretation
Excise tax levels are generally low in the region. From a public health perspective, tax rates could be increased, and tax designs improved (e.g., excluding bottled waters). The method describe here provides a feasible and informative way to monitor SSB taxation and could be replicated in other regions and over time.
Funding
Bloomberg Philanthropies through the Global Health Advocacy Incubator.
Excise taxes can be used to reduce the consumption of sugar-sweetened beverages (SSBs), an important preventable risk factor for noncommunicable diseases. This study aimed to compare novel standardized indicators of the level of taxes applied on SSBs as a percentage of the price across beverage categories in Latin America and the Caribbean.
Methods
We used a method developed by the Pan American Health Organization and adapted from the World Health Organization's tobacco tax share. The analysis focused on the most sold brand of five categories of non-alcoholic beverages. Data were collected by surveying ministries of finance and reviewing tax legislation in effect as of March 2019.
Findings
Of the 27 countries analyzed, 17 applied excise taxes on SSBs. Of these, median excise taxes represented the highest share of the price for large sugar-sweetened carbonated drinks (6·5%) and the lowest for energy drinks (2·3%). In countries where excise taxes were applied on bottled waters, tax incidence exceeded the one applied on most SSBs. Overall, excise tax shares were higher in Latin America than in the Caribbean. Including all other indirect taxes (e.g., value added tax), median total tax shares were between 12·8% and 17·5%. At least two countries earmarked part of SSB excise tax revenues for health purposes.
Interpretation
Excise tax levels are generally low in the region. From a public health perspective, tax rates could be increased, and tax designs improved (e.g., excluding bottled waters). The method describe here provides a feasible and informative way to monitor SSB taxation and could be replicated in other regions and over time.
Funding
Bloomberg Philanthropies through the Global Health Advocacy Incubator.
Date Issued
2022-07-01
Date Acceptance
2022-04-01
Citation
The Lancet Regional Health. Americas, 2022, 11
ISSN
2667-193X
Publisher
Elsevier
Journal / Book Title
The Lancet Regional Health. Americas
Volume
11
Copyright Statement
© 2022 Published by Elsevier Ltd. This is an open access article under the CC BY IGO license (http:// creativecommons.org/licenses/by/3.0/igo/)
License URL
Identifier
https://www.ncbi.nlm.nih.gov/pubmed/35875252
PII: S2667-193X(22)00074-6
Subjects
CONSUMPTION
DRINKS
Fiscal policies
HEALTH
Health Care Sciences & Services
Health economics
Life Sciences & Biomedicine
Noncommunicable diseases
Nutrition policy
Obesity
OBESITY
POLICY
Public, Environmental & Occupational Health
RISK
Science & Technology
Sugar-sweetened beverages
Publication Status
Published
Coverage Spatial
England
Article Number
100257
Date Publish Online
2022-04-21