Sugar tax, a long overdue step to promoting public health

THE EDITOR, Madam:

The Government has introduced a tax on sugar-sweetened, non-alcoholic beverages (NASBs), aiming to raise $10.1 billion in revenue for the 2026-2027 fiscal year. This Special Consumption Tax (SCT) is expected to increase the price of a 600ml soda by around $12.

For consumers, this means to expect higher prices for sugary drinks, which could lead to reduced consumption and healthier choices. The Government hopes that this tax will help combat Jamaica’s high obesity and diabetes rates, as sugary drinks are a significant source of excess sugar intake.

Economically, this tax is part of a broader effort to recover from Category 5 Hurricane Melissa’s impact and stabilise the economy. The revenue generated will contribute to the Government’s $1.4-trillion budget. While some argue that the tax might not significantly change consumer behaviour, the Consumers Intervention of Jamaica sees it as a long overdue step towards promoting public health.

We enthusiastically hope it will encourage consumers to cut back on sugary drinks.The measure is part of a global trend to reduce sugar consumption and promote public health.

NASB taxes have already been implemented in over 130 jurisdictions worldwide, with varying degrees of success. Countries like Mexico, the UK, and South Africa have seen positive outcomes, including reduced sugar consumption and reformulation of products to contain less sugar.

In Mexico, the tax led to an 11 per cent price rise for soft drinks, resulting in reduced purchases and consumption. The UK’s sugar tax has also encouraged manufacturers to reduce sugar content in their products. Similarly, South Africa’s tax has led to a decrease in the sale of sugar-sweetened beverages.

However, some studies suggest that NASB taxes may not significantly impact overall sugar consumption or obesity rates. For instance, France’s tax didn’t lead to substantial reformulation, while Portugal’s tax resulted in an 11 per cent reduction in energy consumption from sugar-sweetened beverages.

The effectiveness of NASB taxes depends on factors like tax design, rate, and coverage. Tiered taxes, like those in the UK and Ireland, can incentivise reformulation and reduce sugar content.

MICHAEL DIAMOND

President

Consumers Intervention of

Jamaica, CIJ