Today, WHO released its first-ever global tax manual for sugar-sweetened beverages (SSBs). Currently, at least 85 countries implement some type of SBB taxation.
The WHO manual highlights the experiences of countries who have successfully implemented the tax, including Mexico, South Africa, and the United Kingdom.
“Taxes on sugar-sweetened beverages can be a powerful tool to promote health because they save lives and prevent disease, while advancing health equity and mobilising revenue for countries that could be used to realize universal health coverage,” said Dr Ruediger Krech, Director of Health Promotion at WHO.
SSB, tobacco, and alcohol taxes have proven to be cost-effective ways of preventing diseases, injuries, and premature mortality. SSB tax can also encourage companies to reformulate their products to reduce sugar content.
Regular consumption of SSBs, including soft drinks, flavoured milks, energy drinks, vitamin waters, fruit juices and sweetened iced teas, is associated with an increased risk of dental cavities, type 2 diabetes, weight gain and obesity in both children and adults, heart disease, stroke and cancer.
Evidence shows that implementing taxes on SSBs increases product prices and reduces demand, resulting in less purchases. A one time global SSB tax increase that raised prices 50 % could generate additional revenues of US$1.4 trillion over 50 years.1
A recent Gallup Poll also found that a majority of people across the United States, Tanzania, Jordan, India, and Colombia supported taxes on SSBs, alcohol and tobacco.2
WHO calls on countries to introduce or increase existing SSB taxes to raise the prices of these products, lessen demand, and reduce consumption. The manual is a reference guide that provides key considerations and strategies for countries to develop, design, and implement SSB taxes.
1https://www.bbhub.io/dotorg/sites/2/2019/04/Health-Taxes-to-Save-Lives.pdf
2https://news.gallup.com/opinion/gallup/401279/global-study-harm-from-noncommunicable-diseases-underrated.aspx
To date, AGRANA had been expecting an overall annual EBIT in 2020/21 of at least € 87.1 million. Following a provisional review of the figures, the Group is now expected to achieve provisional earnings before interest and tax (EBIT) in its 2020/21 financial year in an amount of € 78.7 million (prior year: € 87.1 million). Group revenue will amount to around € 2,550 million (2019/20: € 2,480.7 million).
Besides the anticipated, significantly weaker, operating performance in the fourth quarter 2020|21, extraordinary items in the fruit preparations business are the main reason why EBIT in 2020|21 is below the level of the prior year.
The 2020/21 annual report will be published as planned on 11 May 2021.
As the government contemplates a ban on the sale of energy drinks to children in England, Jonathan Davison, Beverage Analyst at GlobalData, a leading data and analytics company, gives his view on the news: “Considering a ban on energy drinks sales in the UK defined by age might seem premature given the already pervasive impact of the recently introduced sugar tax. A handful of energy drinks brands have reformulated their products and the *22 % volume sales increase of low calorie energy drinks in the UK in 2017 v 2016 would suggest the industry is making progress.
“Such action from the government would of course have an effect, but if reducing caffeine and sugar intake is the goal another approach could simply be to look at capping energy drink pack sizes instead. Larger energy drink pack formats have fast become the norm in the UK, particularly 50cl which has more than doubled in volume over the last 10 years to dominate the category. Limiting energy drink pack sizes to 25cl and below, and potentially the quantity that can be purchased, could go some way to addressing the current concerns without the need for an outright ban.”
* GlobalData Consumer Intelligence Centre
In Spring Statement the Chancellor, Philip Hammond, announced a call for evidence on using the tax system or charges to address single-use plastic waste in the UK.
The review will look broadly across the whole supply chain, from production and retail to consumption and disposal.
In his speech, Philip Hammond insisted that any measures will seek to change behaviour and encourage innovation, rather than raise revenue. Any such revenue raised will be invested into developing “new greener products and processes” and to kick-start this Government is committing £20 million now from existing budgets to “businesses and universities to help stimulate new thinking and rapid solutions in this area.”
Responding to the announcement, BSDA’s Director General Gavin Partington (British Soft Drinks Association) said:
“As an industry we recognise that more can be done to reduce litter and increase recycling rates and so we welcome the launch of the innovation fund to develop new greener products and processes.
“The ambition is for all our packaging in the UK to be 100 % recyclable, that consumers recycle and that drinks containers do not end up as litter in our towns, countryside, rivers and oceans.
“We have long believed that reform of the current compliance system would create greater transparency, and lead to increased investment in UK recycling infrastructure, more so than a tax on a single material.
“We believe that by working together with governments, NGO’s and other stakeholders real progress can be achieved to make the UK the world leader in creating a truly circular economy.”
