Sugar-based beverage taxes and beverage prices: evidence from South Africa's health promotion levy

Abstract

Facing an increasingly severe burden of disease attributable to excess sugar and sugar sweetened beverage (SSB) consumption, South Africa implemented a tax on SSBs (Health Promotion Levy HPL, 2018). By taxing ingredients rather than whole products, producers are incentivized to reformulate products to reduce the concentration of the taxed ingredient. Drawing on micro price data collected for compilation of Statistics South Africa’s Consumer Price Index, and the discrete introduction of South Africa’s HPL on the sugar content of SSBs, the paper estimates change in prices of taxed and untaxed products following the introduction of this sugar-based tax.

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Keywords

SUGAR-SWEETENED BEVERAGES, ULTRA-PROCESSED PRODUCTS, HEALTH POLICY, FOOD SYSTEMS, SUGAR, OBESITY, TAXATION, NON-COMMUNICABLE DISEASES, COMMERCIAL DETERMINANTS OF HEALTH, SOUTH AFRICA, SOUTH OF SAHARA

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