The Australian Government Should Introduce a Sugar-Sweetened Beverage Tax

The Australian Government Should Introduce a Sugar-Sweetened Beverage Tax
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The Australian Government Should Introduce a Sugar-Sweetened Beverage Tax
The sugar tax debate has pitted the sugar companies and political class on one side and the health experts on the other. Each side’s argument has its merits and demerits. Health experts insist that the sugar tax debate is a big an issue as the tobacco debate, but the opponents to the introduction of this tax say that the only way to improve health is for each citizen to take personal responsibility (Davey, 2018a). There are around 26 nations that have introduced a varied form of sugar-sweetened beverage tax ranging from a flat tax rate to a proportional tax rate based on the sugar content. This paper will posit that the introduction of sugar-sweetened beverage tax will go a long way in improving the health outcomes of Australians. To do so, the essay will examine proof brought forward by various bodies and advocacy groups as well as mention the opponents view to the introduction of the tax.
The Australian health crisis has led to the country being ranked in the worst third of developed nations with people classified as obese. Even with the increasing life expectancy of Australians, about half of the deaths are caused by chronic conditions created by risk factors from obesity. The numbers are stark: more than 63 per cent of people who are 18 years and older are obese and 28 per cent of children between 5-17 years are obese (Australian Institute of Health and Welfare, 2018). Rises in obesity are directly linked to the amount of sugar intake. The crisis is so bad that it pushed the World Health Organisation to suggest a maximum limit of 12 teaspoons of sugar per day (World Health Organisation, 2015). In Australia, the bulk of sugar consumed by the population comes from added sugar in fruit juices and honey. The added sugar in beverages sold in Australia is more than that suggested maximum (Australian Bureau of Statistics, 2016). Consequently, such a crisis needs to be handled or it will get worse.
A tax on sugar-sweetened beverages is a good place to start in reducing the obesity a crisis. The strength of the tax in reducing the crisis is that it targets a particular good, that is beverages. Such a tax will also be easier to implement and manage as the tax can be implemented at production. The Australian government can identify the sugary drinks manufacturer, and since they are limited in number, it becomes less cumbersome to operationalise (Davey, 2018b). Therefore, the government cannot cite complexity as an excuse for not implementing the tax.
More so, a reduction in sugar-sweetened beverage consumption will significantly reduce the obesity rate as was concluded in a study done by Blake et al. (2018). Blake et al. (2018) looked at the effect an increase in the price of sugar-sweetened beverages will have on its consumption level. If the price increases by just 20 per cent, then the consumption level reduced by about 30 per cent, the study concluded (Blake et al., 2018). The study provided a real-world scenario that proves an increase in price affects consumption level. It is safe to say that this will translate into lower obesity numbers hence better health outcomes.
One of the concerns raised by the tax’s opponents is if the tax has the potential to achieve its intended purpose. ...