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Taxation |
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An aspect of fiscal policy |
A sugary drink tax, soda tax, or sweetened beverage tax (SBT)[1][2][3] is a tax or surcharge (food-related fiscal policy) designed to reduce consumption of sweetened beverages by making them more expensive to purchase. Drinks covered under a soda tax often include carbonated soft drinks, sports drinks and energy drinks.[4] Fruit juices without added sugar are usually excluded, despite similar sugar content, though there is some debate on including them.[5][6]
This policy intervention is an effort to decrease obesity and the health impacts related to being overweight. The tax is a matter of public debate in many countries and beverage producers like Coca-Cola often oppose it. Advocates such as national medical associations and the World Health Organization promote the tax as an example of a Pigouvian tax, aimed to discourage unhealthy diets and offset the growing economic costs of obesity.[7]
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