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Table 1 Examples of sweetened beverage tax structures, designs and their goals

From: How should we evaluate sweetened beverage tax policies? A review of worldwide experience

Tax design Levied on/ collected from [goes to] [22, 26] Example where implemented
Location Dates [22, 26] Taxable categories definitions [22, 26] Exempted products/
Categories [22, 26]
Tax rate/level [22, 26] Stated purpose Framing
Ad valorem Excise on distributors, importers & manufacturers [general budget] Barbados [27]
[national]
Announced: June 2015
Implemented: 1 September 2015
Carbonated soft drinks, juice drinks, sports drinks, fruit juices that contain added high calorie sweeteners
based on Harmonized System (HS) tariff codes
• 100% juices
• Powders and concentrates
• Sugar sweetened dairy/milks
10% of value/price that manufacturer/distributors charge retailers. Address the high burden of non-communicable diseases in Barbados [27] Revenue generation
Reduce consumption of taxed beverages [27]
Ad valorem Goods and Services Tax (GST) collected at point of purchase [general budget] India [28] [national] Implemented: 1 July 2017 Aerated drinks and lemonades based on HS tariff code • 100% juices
• Powders and concentrates
• Sugar sweetened dairy/milks
• Other non-aerated drinks with added sugar
Aerated drinks and lemonades (40%: from 12% GST on all processed packaged foods/beverages + 28% GST on sin goods) Simplify tax structure of prior
Central VAT + State VAT, and eliminate cascading taxes [28]
Improve tax collection and revenue generation [28]
Specific – Volume Excise on distributors, importers & manufacturers [general budget] Mexico [29] [national] Implemented: 1 Jan 2014 All non-alcoholic beverages with added sugar including reconstituted powdered sugar-sweetened drinks and flavoured/sweetened dairy products that are not milks • Milk products (milk is the primary/first ingredient)
• 100% fruit and/or vegetable juice
1 Mexican Peso per ready-to-drink litre
Indexed to inflation once cumulative inflation hits 10%
Address high prevalence of diabetes and cardiovascular diseases in Mexico [29] Reduce consumption of taxed beverages [29]
Specific – Volume Excise on distributors, importers & manufacturers [Office of education and general budget] Philadelphia County/City in Pennsylvania, United States [30]
[City Council vote]
Enacted: 16 June 2016
Implemented: 1 Jan 2017
• Bottled beverages
• Syrups/concentrates for commercial sale
• Fruit/vegetable drinks with added sugar
• Mixers
• Coffee syrups distributed to coffee shops
• Beverages containing sweeteners that are only non-caloric (“diet drinks”)
• Milk products (milk is the primary/first ingredient)
• 100% fruit and/or vegetable juice
• Syrups, concentrates, and powders sold to consumers
• Natural or common sweeteners that are not already in beverages
US $0.015 per ounce on retail sale on ready-to-drink volumes of taxable beverages
Not indexed to inflation
None
Earmark not in ordinance but in mayor’s budget [26].
Revenue generation to support new or expanded programs including Pre-K access and Rebuild (for park, community centre, and library repairs) [26].
Specific – Volume tax based on sugar concentr-ation threshold Excise on distributors, importers & manufacturers (exempt producers with < 1 million litres/year)
[general budget]
United Kingdom [31]
[national]
Announced: March 2016
Public Consultation: Aug 2016
Implemented: 6 April 2018
All packaged beverages that contain sugar added during production of at least 5 g of sugar per 100 ml in ready to drink form • Drinks with ≥75% milk
• Milk replacement drinks (e.g. plant based ‘milks’)
• Alcohol replacement drinks (with alcohol by volume < 0.5%)
• 100% fruit/veg juices
• Liquid drink flavouring added to food/drinks
• Powders mixed into liquids and served in open container
£0.18 per litre for drinks containing at least 5 g of sugar per 100 ml
£0.24 per litre for drinks with more than 8 g per 100 ml.
Reduce childhood obesity by removing added sugar from soft drinks [31].
Encourage soft drink producers and importers to [31]:
• reformulate to cut sugar content
• reduce portion sizes of added sugar drinks
• import reformulated drinks with less sugar
Reformulations
Reduce sugar consumption from beverages
Fund children’s health initiatives (e.g., school sports and healthy school breakfast clubs) [31]
Specific – Sugar content based Excise on distributors, importers & manufacturers (exempt producers with < 50 K liters/yr) [general budget] South Africa [32] [national] Policy paper for public consultation:
July 2016
Draft legislation: Feb 2017
Enacted: Dec 2017
Implemented: 1 April 2018
Based on Harmonised System (HS) tariff codes
• Syrups and concentrates
• Cocoa powder and milk extracts
• Non-alcoholic waters, mineral, aerated or juices, with sugar or flavouring
• Non-alcoholic beer
• Milk products (milk is the primary/first ingredient)
• 100% fruit and/or vegetable juice
2.1 SA cents per gram of sugar in excess of 4 g/100 ml based on ready-to-drink (reconstituted) form
Products in taxable HS category with no sugar information will be taxed based on default of 20 g of sugar/100 ml in reconstituted form
Indexed to inflation
Address high prevalence of diabetes, obesity and cardiovascular diseases [32, 33] Reduce sugar consumption from beverages [32]
Specific – Sugar type based Excise on distributors, importers & manufacturers [general budget] Philippines [34] [national] Enacted: 19 Dec 2017
Implemented: 1 Jan 2018
Sweetened pre-packaged:
• Sweetened juice drinks
• Sweetened tea
• All carbonated beverages
• Flavoured water
• Energy and sports drinks
• Powdered drinks not classified as milk, juice, tea or coffee
• Cereal /grain beverages
• Other non-alcoholic beverages with added sugar
• All milk products, whether powdered or in liquid form, sweetened or not
• 3-in-1 coffee packs
• 100% fruit and vegetable juices
• beverages sweetened with stevia or coconut sugar.
Drinks with caloric and non-caloric sweeteners will be taxed 6 Ph Peso per litre.
Drinks with high-fructose corn syrup taxed at 12 Ph Peso per litre.
Not indexed to inflation
Generate revenue and fight obesity and diabetes and poor dental health
Part of larger Tax Reform for Acceleration and Inclusion (TRAIN) Law [34]
Health measure to addressed poor oral health which results in poor school attendance and poor nutrition
Improve tax collection and revenue generation [34]