Adherence
Implementing specific health taxes on sugar-sweetened beverages at rates of 20% or higher significantly reduces consumption and improves population health outcomes, whereas lower rates (<20%) generally fail to produce meaningful behavioral change.
To effectively reduce sugar-sweetened beverage consumption, policymakers must implement specific taxes that raise the shelf price by at least 20%. Lower taxes (under 20%) are ineffective because consumers do not react to small price increases, especially if the tax is not clearly visible on the shelf. To mitigate political backlash regarding the regressive nature of these taxes, revenues should be earmarked for health-related spending or subsidies for healthy foods.
If the primary policy goal of a health tax is to reduce consumption of unhealthy products, then evidence supports the implementation of taxes that increase the price of products by 20% or more.
Why this rating
Based on a systematic review of 91 peer-reviewed studies, though many are modeling studies rather than long-term evaluations.
Source
Policy lessons from health taxes: a systematic review of empirical studies
Alexandra Wright et al. · BMC Public Health · 2017
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