Countries with Soda Tax
What countries have a soda tax? A sugary drink tax aims to reduce consumption of sweetened beverages to decrease obesity. The tax is levied in addition to sales tax. Distributors typically pay the tax, but costs increase for consumers.
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As of 2020, eight U.S. cities collected a soda tax, four in California. Studies suggest taxing sugary drinks reduces purchases, potentially improving public health. In 2013, U.S. households spent more on sugary drinks than on juice, water, diet soda combined.
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Nine European countries levy soda taxes averaging $0.075 per 12 ounce can. Norway’s is highest at $0.146 per can. Ireland and the UK follow at $0.126 and $0.113. Over 35 countries and seven U.S. cities now tax soda. Projects funded by the tax aim to improve children’s health.
Soda Tax in Canada
What is the soda tax in Canada? Alberta is the only province that does not have its own sales tax. Although framed as a health milestone, critics argued it may do little to combat obesity. When Philadelphia imposed a soda tax in 2017, sales declined, forcing a grocery store closure in a low-income neighborhood. Soda taxes aim to reduce sweetened beverage consumption to decrease obesity. In 2019, some states banned local soda taxes. New York taxes over 7.5 grams of sugar per 12 oz. In 2017, Philadelphia implemented a 1.5 cent per oz soda tax. No state has an excise tax on soda. Taxes are local. Pitched as a solution to obesity, Canada’s first soda tax faces pushback. Framed as a milestone, critics say it won’t reduce obesity and costs jobs. Consumption has declined as people choose healthier options. Education may be the most powerful tool. Canada has high liquor taxes to reduce consumption, but many call it exploitation of addicts.