Tax on fizzy drinks 'DOES help tackle obesity': But taxing ingredients like sugar 'would have an even bigger impact'

• American Cancer Society found a tax on fizzy drinks in Mexico has worked
• Early results show the tax has reduced the consumption of sugary drinks
• Scientists believe taxing the level of sugar rather than the drink is better
• Argue it would incentivise manufacturers to make their drinks healthier 

By Lizzie Parry for MailOnline

Published: 06:26 EST, 17 July 2015 | Updated: 08:08 EST, 17 July 2015

A tax on sugar-laden fizzy drinks does help reduce obesity levels, a new study has revealed.

But the measure is most effective when the tax depends on the number of calories or amount of sugar per litre, scientists discovered.

While a few countries are already trailing a tax on sugary drinks, taxing the dose would encourage drinks companies to offer low-calorie alternatives, the American Cancer Society said.

The study comes as the Scientific Advisory Committee on Nutrition (SACN) today advised the British Government that recommended sugar levels are slashed in half, from 14 teaspoons a day for an adult, to just seven.

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A new study by the American Cancer Society found taxation on sugary fizzy drinks does help fight obesity. But it concluded rather than imposing a flat tax on volume of drinks consumed, the sugar levels in drinks should be taxed to incentivise manufacturers to lower the levels of sugar in their products

The new guidance, which is expected to form part of the Department of Health's forthcoming programme to tackle childhood obesity, has prompted calls for the Government to introduce a tax on fizzy drinks.

In January last year, Mexico became the first nation to impose such a tax on sugar-sweetened drinks.

A tax of one peso, around $0.07, per litre, equates to around 10 per cent of the price.

The measure applies to all drinks that have been sweetened using sugar, not just carbonated drinks.

Mexico consumes more sugar-sweetened drinks than any other country, looking at Coca-Cola products alone, the nation drinks 745 servings per person each year, compared to a worldwide average of 94.

Early results from the Mexico-experiment indicate that the tax is having an impact, reducing the consumption of sugary drinks.

But, researchers at the American Cancer Society, suggest in their new study that basing the tax on the dose of calories or sugar in a product rather than applying a flat tax across the board, could make it even more effective. 

Dr Evan Blecher, senior economist at the society, said: 'Taxing sugary drinks isn't a new concept, but given the immediacy of the global obesity problem, it's time we got creative with how we approach it.

'We could get sharper effects from taxation if we tax the dose of an ingredient, like sugar, or calories.' 

Dr Blecher and his team drew comparisons between taxing tobacco, alcohol and sugary drinks, using South Africa as a case study.

While a flat tax has proven an effective approach to tobacco and smoking rates, the researchers argue it may not be the best way to encourage different habits when it comes to drinking alcohol and sugary drinks.

So far, the tobacco tax suggests that taxing the number of cigarettes is best.

Translate that theory to alcohol and fizzy drinks, and this would mean taxing by volume.

However, taxing the dose of a particular ingredient, the alcohol in alcoholic beverages or the sugar or calories in sugar-sweetened drinks, could be more effective.

And, Dr Blecher said, it might incentivise drinks companies to offer healthier alternatives. 

This approach has been effective in reducing the consumption of alcohol in South Africa, reducing the amount of alcohol consumed in beer by 12 per cent by 1998.

As well as being a possible approach for sugar-sweetened drinks, it could also be effective at controlling unhealthy food consumption, and even fuel consumption.

The study comes as the Scientific Advisory Committee on Nutrition (SACN) today advised the British Government that recommended sugar levels are slashed in half, from 14 teapsoons a day for an adult, to just seven teaspoons or cubes a day

Jamie Oliver launched petition for tax on sugary drinks in May

'Effectively, this is not that different from the conceptual understanding of carbon taxes - the idea is to tax the dose of the pollutant to incentivise consumers and producers to use better technologies to reduce carbon,' said Dr Blecher.

'We could use it as a mechanism for taxing fuel: at the moment all petrol is taxed at a flat rate, but different petrols release varying amounts of pollutants in to the atmosphere. 

'Taxing according to pollutant production could be a new approach.'

Worldwide, an estimated 1.9 billion adults are overweight, and of these, 600 million are obese. 

Obesity increases the risk of diseases like type 2 diabetes; in the US alone, obesity-related healthcare costs around $200 billion a year.

Due to their high sugar content and low nutritional value, there is growing concern that sugary drinks are a significant contributor to obesity. 

Consumption has increased drastically in recent decades, leading policy makers to look for ways of reducing the amount of sugary drinks in our diets.

Mexico consumes more sugar-sweetened drinks than any other country - 745 servings per person each year, compared to a worldwide average of 94

Earlier this week the British Medical Association reignited calls for a sugar tax of 20 per cent to be introduced to combat the nation's spiralling obesity epidemic.

Today's report from the SACN says no more than five per cent of a person's daily calories should come from added sugar.

That equates to 30g or seven teaspoons for an adult.

Reacting to the new recommendations, the BMA said a sugar tax is vital as research shows poor diets cause around 70,000 premature deaths each year.

The BMA suggest the revenue generated, which could amount to 13p on each can and 37p on a two-litre bottle of fizzy drink, should be used to make fruit and vegetables cheaper. 

A study published in the British Medical Journal backed the idea for a sugar tax.

It estimated that a 20 per cent tax would lead to a reduction in the prevalence of obesity in the UK of 1.3 per cent - around 180,000 people.

And researchers highlighted the greatest impact would be seen among young people.

The authors wrote: 'Taxation of sugar-sweetened drinks is a promising population measure to target population obesity, particularly among younger adults.' 

But, the idea of a sugar tax being imposed in the UK has been met with hostility in some quarters.

And Prime Minister David Cameron was quick to slap down life sciences minister George Freeman, who suggested the idea just days after being appointed following the May election.

No 10 ruled out the move, insisting other ways must be found to tackle the UK's obesity crisis.

Speaking in May, the Prime Minister's official spokesman said: 'No. Working with public health professionals, the industry on public health matters, including obesity, that is an important agenda,' he added.

'However, as I hope I have been very clear in my first answer, I don't believe that the right approach here is to put sugar taxes on hard-working people to increase the weight and cost of their shopping baskets.

'So, we will continue with the approach that has been taken, which has been around working with the industry, working with public health bodies and the like.' 

The Food and Drink Federation has also argued against the tax, claiming it would hit the poorest families at a time when they can least afford it.

Meanwhile, others questions whether those who maintain a healthy diet and lifestyle should be taxed to mitigate the lifestyles of those who do not. 

The new guidelines suggested by British Government advisers mean a single can of Coke would put an adult over their 30g daily recommended sugar intake, with 35g of sugar per can

Dr Gail Rees, associate professor in Human Nutrition at Plymouth University School of Biomedical and Healthcare Sciences, said: 'My argument is a simple one: whether we are directly or indirectly affected by obesity, at the end of the day it is everyone’s problem and we should all be worried about it.

'If the UK was to introduce a tax on sugar it would not be the first country in the world to do so – other nations, such as France, Finland and Hungary have already placed taxation on sweetened beverages.

'Obesity in the UK is at a very high level and if it continues to increase at its current rate the outlook for the health of the nation is, without exaggerating the threat, scary. 

'The very fact that the BMA is suggesting a tax on sugar is indicative of how seriously the issue is taken by those at the very highest levels. 

'We need to look at lots of different approaches to the problem: a tax on sugar is just one of those approaches and, in my view, a sensible one to adopt.'

Looking away from the idea of imposing a tax, other bodies have suggested a clearer traffic light labelling system on packets of food.

Which? executive director Richard Lloyd, said: 'More needs to be done to help consumers make a healthier choice.

'Manufacturers must follow the example of retailers by introducing traffic light labelling, so it's obvious how much sugar products contain especially those aimed at children.

'Retailers can also do more by ensuring they act responsibly when promoting items that are high in sugar.'  

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