A sugar-sweetened beverage tax proposal (S.B. 622) introduced in February 2013 by Sen. Bill Monning (D) and co-sponsored by the California Center for Public Health Advocacy, is scheduled for public hearing on April 24, 2013. The proposed legislation would impose a 1 cent per fluid ounce tax on sugar-sweetened beverages to finance a Children’s Health Promotion Fund that would pay for a statewide childhood obesity prevention program and apply to all sugar-sweetened beverage distributors whether their products are bottled or sold as concentrate. “This bill will combat the obesity crisis and ensure that our children—and future generations of Californians—are not doomed to a shorter life expectancy and can instead live longer, healthier lives,” Monning has been quoted as saying. Details about S.B. 622 appear in Issue 473 of this Update. See Los Angeles Times, February 26, 2013.
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Proposed legislation (S.B. 622) in California would impose a 1-cent per fluid ounce tax on sugar-sweetened beverages to finance a Children’s Health Promotion Fund. Introduced by Sen. Bill Monning (D-Carmel), the measure would apply to all sugar-sweetened beverage distributors whether their products are bottled or sold as concentrate. Intended to “discourage the excessive consumption of sweetened beverages by increasing the price of these products,” the proposal would also create a fund “allocated for the purposes of statewide childhood obesity prevention activities and programs.” To this end, the Children’s Health Promotion Fund would support, among other things, state- and community-based efforts to reduce consumption of “calorie-dense, nutrient-poor foods” and improve access to “healthy, safe, and affordable foods and beverages.” “This bill will combat the obesity crisis and ensure that our children—and future generations of Californians—are not doomed to a shorter life expectancy and can instead live longer, healthier lives,” Monning was quoted…
A group of Rhode Island legislators has proposed a bill that would impose a statewide penny-per-ounce tax on sugar-sweetened beverages. More specifically, the tax would apply to “any nonalcoholic beverage, whether naturally or artificially flavored, whether carbonated or noncarbonated, sold for human consumption, containing sugar, corn syrup or any other high-calorie sweetener, including, but not limited to, cola and other flavored drinks, and all other drinks and beverages commonly referred to as ‘soft drinks,’ ‘sodas,’ ‘sports drinks’ or ‘energy drinks.’” Exemptions to the tax would include 100 percent fruit and vegetable juices, infant formula and milk products. Products intended by manufacturers for use as dietary supplements or for weight-reduction aids would be exempt as well. Meanwhile, Vermont lawmakers have proposed a similar bill that would impose a penny-per-ounce tax on the sale of beverages containing added sugar or high-fructose corn syrup. Fifty percent of the revenues generated would be directed…
Rep. Joe Farias (D-San Antonio) has proposed a bill (H.B. 779) that would impose a statewide penny-per-ounce tax on soft drinks, particular sweetened beverages and the powders and syrups used to make them. The tax would increase each year by the same percentage as the “most recent annual revised Consumer Price Index for All Urban Consumers.” The legislation, which purportedly aims to fight obesity and supplement funding for health programs in public elementary and secondary schools, calls for 80 percent of the tax revenue collected to go to the Texas Education Agency and 20 percent to the Department of State Health Services. The proposed tax would apply to all nonalcoholic, carbonated and noncarbonated beverages and mixes that contain natural or artificial sweeteners. Exceptions to the tax would be certain sports drinks, 100 percent fruit and vegetable juices, infant formula, milk products, and beverages containing sweeteners that do not add calories.…
A Mexican lawmaker has proposed a 50 percent tax on chewing gum. According to news sources, Institutional Revolutionary Party Deputy Juan Manuel Diez Francos claims such a tax could fund efforts to clean up the gum discarded in various public venues. Mexico is apparently the second largest consumer of gum behind the United States—citizens chew an average of 2.5 pieces daily. A similar proposal is currently being sought in Northern Ireland for the same reasons. See VOXXI, November 28, 2012.
The Irish food and drink industry has reportedly rejected government proposals to impose a sugar tax on soft or “fizzy” drinks, calling the tax a “discriminatory” measure that “would have no health benefits and would further hit already hard-pressed Irish consumers.” Commenting on the issue, Food and Drink Industry Ireland (FDII) cited the “fat tax” initiative in Denmark that was reversed this week after authorities found it did not change consumer behavior but instead led to higher inflation and an increase in cross-border shopping. As FDII Director Paul Kelly explained, “Fiscal measures specifically aimed at altering behavior are complex to design and can be highly unpredictable. Ireland already imposes high taxes on many foods. While most foods are exempt from VAT, the standard rate of 23% applies to confectionery items like sweets, chocolate, crisps, ice-cream and soft drinks. An additional tax on sugar or soft drinks would leave Irish consumers…
France’s National Assembly has reportedly rejected a proposed tax on palm oil that appeared to be a go earlier in the week. On November 12, 2012, the French Senate voted 186-155 against the so-called “Nutella tax,” which aimed to impose a 300 percent tax on palm oil, a key ingredient in the beloved hazelnut-chocolate spread that is high in saturated fats. Arguing that palm oil poses a threat to public health, lawmakers initially proposed the measure as part of a larger bill focused on financing the national health care system and encouraging manufacturers to use healthier alternatives. According to news sources, Nutella® is 20 percent palm oil, so had the tax passed, the price of the popular spread would have likely increased by about 0.06 Euros per kilo, or about three-and-one-third cents per pound. But the anticipated price increase apparently upset French consumers, who have traditionally been among Nutella’s® most…
Danish lawmakers have killed a controversial “fat tax” one year after its implementation, finding that the tax’s negative effect on the economy and small businesses far outweighed any health benefits. According to news sources, nations such as Germany, Switzerland and the United Kingdom have held up the tax, which applies to foods containing more than 2.3 percent saturated fat, as a potential model for addressing obesity and other health concerns. But in Denmark, the tax has become a source of pain for consumers, food producers and retailers as the nation’s economy struggles. The Danish tax ministry has evidently said that fat and sugar taxes have drawn criticism for increasing prices for consumers and companies alike, and putting Danish jobs at risk, as well as for encouraging Danes to travel across the border to buy cheaper foods. As the tax ministry thus stated, “The suggestions to tax foods for public health…
Voters in Richmond and El Monte, California, have rejected measures that would have taxed soda and other sugar-sweetened drinks at a penny-per-ounce rate. According to media sources, Richmond City Councilmember Jeff Ritterman initially proposed Measure N as a way to discourage residents from consuming sugary drinks, which he identified as a prime culprit behind the rise in diabetes, obesity, heart failure, and other related issues. “I’m disappointed, but overall I think this has been a positive for Richmond,” said Ritterman. “It’s started a great conversation in this community. I think President Obama should (propose a soda tax). [Governor] Jerry Brown should. This is just the beginning of the wave.” See San Francisco Chronicle, November 7, 2012. While 67 percent of Richmond’s electorate apparently voted against Measure N, 77 percent of voters in the Los Angeles suburb of El Monte also rejected a soft drink tax—an outcome that a November 7 Huffington Post…
U.K. members of Parliament (MPs) have reportedly agreed to revisit a beer duty escalator tax that raises the price of a pint each year by 2 percent plus the rate of inflation. According to media reports, Conservative MP Andrew Griffiths argued in the House of Commons that the current beer tax has cost the country thousands of jobs as beer sales decline and pubs are forced out of business. The debate purportedly concluded with 100 MPs voting to review the tax despite Treasury Minister Sajid Javid’s concern that the government would lose £105 million over the next two years if it were abolished. “The reality is since the introduction of the beer duty escalator [in 2008], beer duty has increased by a crippling 42 per cent,” said Griffiths, who chairs the All-Party Parliamentary Beer Group. “The point about an escalator is you stop when you get to the top. We…
