2016/03: Should Australia impose a tax on sugar-sweetened soft drinks?





Introduction to the media issue

Video clip at right:
On March 16, 2016, Britain's ITV News ran a report explaining the operation of the country's newly-announced sugar tax on soft drinks and the social and public health issue it is meant to help address. If you cannot see this clip, it will be because video is blocked by your network. To view the clip, access from home or from a public library, or from another network which allows viewing of video clips.


What they said...
'It's about time your governments got on this...Australia, pull your finger out'
British celebrity chef and public health campaigner, Jamie Oliver

'All this tax will do is cost jobs'
The Australian Beverage Council's chief executive officer, Geoff Parker

The issue at a glance
On March 16, 2016, the British Government announced that from 2018 a tax will be imposed on some sugar-sweetened beverages. The tax would apply to drinks with a total sugar content above 5 grams per 100ml, with a higher band for more sugary drinks. Drinks below 5g of sugar per 100ml, such as Lucozade Sport and Volvic Touch of Fruit, will be exempt; as will fruit juices and milk-based drinks such as Frappuccinos.
Beverage manufactures will be taxed according to the volume of sugar sweetened beverages they produce or import.
The total level of the tax has yet to be announced, but the measure is estimated to generate an additional S520 million a year in tax revenue to be used to combat childhood obesity, with part of the money raised going towards doubling funding for primary school sport.
The British Office for Budgetary Responsibility expects the rates to be passed entirely on to consumers. The government expects the price rise to discourage consumers from purchasing the taxed sweetened drinks.
After the British announcement a number of Australian public health advocates and British celebrity chef and public health campaigner, Jamie Oliver, have called on the Australian government to impose a similar tax.
Australian Beverages Council maintains that such taxes serve no useful purpose. They also maintain that soft drink manufacturers are already acting in a socially responsible manner without the coercion of a tax on their products.