Scientists propose to fight obesity with special taxes

Obesity is called one of the main epidemics of the 21st century, and the whole world is looking for medical and economic ways to combat it. One of them is the introduction of special taxes on sweetened drinks. Many countries have already taken this path, including Russia. It was assumed that less availability of these types of products would be the key to reducing obesity and its adverse health consequences.

But in fact the expectations were not confirmed. What has been shown by the new work of scientists from the Faculty of Agricultural and Resource Economics (University of California, Davis, USA), who analyzed more than 100 studies from 50 countries on this topic.

Scientists analyzed current taxation in more than 50 countries and conducted their own research on the effectiveness of taxes on sweetened and carbonated drinks. They came to a surprising conclusion: There is no convincing evidence that soda taxes have in any meaningful way reduced the amount of sugar or calories people consume or stimulated increased purchases of healthier drinks. Taxes on sugary drinks alone simply won’t encourage consumers to make healthier food choices, say the authors of a new study.

Little progress has been made worldwide in reducing deaths from chronic noncommunicable diseases associated with overweight or obesity, prompting the World Health Organization and others to recommend taxes on sweetened drinks. This is what was done in many countries around the world.

WHO estimates that more than 17 million people die prematurely from chronic noncommunicable diseases every year. Being overweight or obese is a major risk factor for many of these diseases, including type 2 diabetes, heart disease, asthma and some types of cancer. A 2019 report from the medical journal Lancet noted that obesity-related annual health care costs and lost economic productivity are estimated at $2 trillion, or about 3% of global gross domestic product.

Consuming large amounts of added sugar is a key part of this problem. One can of soda can contain more than 10 teaspoons of sugar; and drinking just one drink exceeds the American Heart Association’s recommended daily allowance for added sugar. It’s easy to see why cutting back on soda consumption has become a popular goal in the war on obesity.

One would think that taxing soda would raise their prices and discourage consumers from buying them. With this idea in mind, a wave of taxes on sweetened drinks has been introduced around the world.

“Yet even the taxes considered most effective today are correlated with reducing the average person’s intake of added sugar by just 18 calories (just over a teaspoon) per day. These reductions can be compensated for by eating just two gummy bears, one teaspoon of ice cream, or two potato chips or french fries,” the authors conclude.

So why were these taxes so ineffective? First, it is often assumed that all taxes will be passed on to consumers. In practice this does not always happen. The analysis found that on average, only about half of local soda taxes in the U.S. are added to product prices.

Another finding: Policies aimed at significantly reducing added sugar or total calories consumed may not be effective if they target only a small group of foods, such as soda. “In the US, taxes on carbonated drinks have been introduced in only a few cities. Some studies show that consumers simply buy soda from nearby places where there is no tax on it. A 2020 study found a staggering 46 percent decline in taxed beverage sales in response to Philadelphia’s 1.5 cents per ounce tax, but more than half of that sales decline was offset by cross-border purchases. Using more recent data, we found a much lower average decline in sales at Philadelphia stores (18 to 25 percent), which is further reduced by cross-border purchases. This may still seem like a fairly significant reduction in sales, but the impact on sugar consumption is small. And instead, people are not buying healthier drinks,” the scientists continue.

They also refute the idea that introducing taxes on sweetened drinks could encourage people to buy healthier food and drink. It turned out that the facts indicate the opposite. People simply switch to buying other, also obviously unhealthy, but cheap products.

What measures could be more effective? Scientists believe the real benefit could come from taxing the sugar content rather than the volume of drinks (with lower tax rates for less sweet products). This encourages manufacturers to reduce the amount of sugar added to drinks. By the way, around 80% of the overall reduction in the amount of added sugar purchased in the UK is due to reformulation by manufacturers rather than a reduction in consumer purchases.

Moreover, experts add, policies aimed at significantly reducing added sugar or total calories consumed may not be effective if they target only a small group of foods, such as sweetened beverages. Taxes on sugar added to all types of food and drink, especially when combined with subsidies that make healthier alternatives (such as fresh fruits and vegetables) cheaper, have a better chance of being an effective intervention in improving population health.

Educational campaigns, labeling policies, and disclosure requirements can further improve people’s ability to make healthier choices. Currently, only a few countries, such as Chile, Peru and Uruguay, inform consumers about the dangers of excessive sugar consumption by placing an obvious warning label on the front in the form of a stop sign for “high sugar content” or “excess sugar.”

It also notes that more research is needed to evaluate which policies, alone or in combination, may be more effective in reducing added sugar intake. “But we already know—despite the encouragement of many researchers and policymakers, and the media attention they have received—that taxes on sugar-sweetened beverages are failing to produce the kind of behavioral changes needed to reverse obesity trends.” , the authors of the work conclude.

By the way, in some countries the idea of ​​a tax on sugary drinks was abandoned, since this measure showed its ineffectiveness (for example, in Finland).

“The data from the published study are of not only scientific interest, but also practical, and require additional study,” Maxim Novikov, head of the Union of Juice, Water and Beverage Producers, told MK. — It is worth noting that the instrument of excise taxation of sugar-sweetened beverages is used in a number of countries around the world, including Russia (since 2023), however, the effectiveness of this measure from a socio-economic point of view has yet to be assessed. It is important to pay attention to one more point – the impact of the excise tax on the consumption of added sugars. According to the Analytical Center for the Government of the Russian Federation, the contribution of soft drinks to the consumption of total sugars is about 1.6%, and sugar itself is 58%. Therefore, if we consider this measure from the point of view of improving public health indicators, an integrated approach is needed that takes into account the contribution of specific product categories to the consumption of added sugar. In addition, many companies in Russia continue to develop the practice of self-regulation and began reducing the calorie content of drinks even before the introduction of excise tax in Russia in 2023. Overall, our industry supports the development of a culture of sustainable consumption, and as part of this policy, new drinks with reduced calorie content are being introduced to the market, as well as packaging volume is being reduced. The global goal is to bring the packaging format closer to one serving of the drink.”

If we talk about the eating habits of Russians, then, alas, the diet of their compatriots remains very unbalanced. According to RANEPA, we consume healthy carbohydrates 19% less than required, and we overeat fats (14% above the norm). We also don’t have enough proteins (we eat 2% less than required). As a result, the percentage of obesity and the diseases to which it leads (diabetes, heart and vascular diseases, oncology) is constantly growing. Well, the problem of sugar consumption in our country is especially acute. According to nutritionists, up to 60% of Russians suffer from sugar addiction. For every Moscow resident, including infants, there is 70 kg of pure sugar per year. Sugar isn’t just found in confectionery; It is found in frozen French fries, semi-finished products, canned food, and milk. According to current recommendations, sugar intake should be less than 10% of total daily calories consumed. WHO experts are collecting arguments in favor of lowering this level to 5% of the daily diet. Based on total calories consumed, this is approximately 25 grams (6 teaspoons) of sugar per day for an adult with a normal body mass index. So it is quite possible that scientists are right in proposing a tax on added sugar.