Taxation and Sugar-Sweetened Beverages: Position of Dietitians of Canada

Dietitians of Canada recommends that an excise tax of at least 10-20% be applied to sugar-sweetened beverages sold in Canada given the negative impact of these products on the health of the population and the viability of taxation as a means to reduce consumption. For the greatest impact, taxation measures should be combined with other policy interventions such as increasing access to healthy foods while decreasing access to unhealthy foods in schools, daycares, and recreation facilities; restrictions on the marketing of foods and beverages to children; and effective, long-term educational initiatives. This position is based on a comprehensive review of the literature. The Canadian population is experiencing high rates of obesity and excess weight. There is moderate quality evidence linking consumption of sugar-sweetened beverages to excess weight, obesity, and chronic disease onset in children and adults. Taxation of sugar-sweetened beverages holds substantiated potential for decreasing its consumption. Based on economic models and results from recent taxation efforts, an excise tax can lead to a decline in sugar-sweetened beverage purchase and consumption. Taxation of up to 20% can lead to a consumption decrease by approximately 10% in the first year of its implementation, with a postulated 2.6% decrease in weight per person on average. Revenue generated from taxation can be used to fund other obesity reduction initiatives. A number of influential national organizations support a tax on sugar-sweetened beverages.