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'Health tax' triggers a 25% drop in consumption of sugar-filled soft drinks

cocacolaPortugal’s taxation of sugary soft drinks has helped trigger a 25% drop in their consumption.

Purchases of sugar-laden drinks fell 25% between February and July 2017, after a new 'health tax' was imposed and the Ministry of Health now plans to apply the tax on a wider range of soft drink products.

The public has started to turn away from sugary drinks to those with a lower sugar content, which are cheaper by comparison.

In February, sugary drinks accounted for 45% of the total sales of soft drinks. By July, this ratio has changed dramatically to 27% 'sugar-rich' and consequently, 73% of less sugary drinks.

“In six months, a very short space of time, there was a large transfer of consumption, which is very positive," said Secretary of State for Health, Fernando Araújo.

The treasury is happy too as the new tax already has raised €46.7 million and should hit the year-end target of €80 million, as per the 2017 State Budget.

But the taxman wants to introduce another taxable band of sugar-filled drinks to put producers under pressure to reduce sugar content - and to rake in more money

The industry has been adapting to the tax, with Sumol reducing the sugar content in its range in order to pay less tax. Coca-Cola has also been pushing Coca-Cola Zero in its advertising to encourage consumption of a drink that does not attract the 'health tax.'

Other measures have helped to encourage consumers to make the switch, such as banning sugar-filled drinks in vending machines in health centres and hospitals.

Consumers are reacting to sugar content and the unit price rises caused by the new tax. A 330ml can of Coca-Cola, for example, contains 35 grammes of sugar - the equivalent of 7 teaspoons - which is viewed by health professionals as an absurd amount of sugar in just one drink.

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Comments  

+4 #1 TT 2017-09-18 18:35
Yet more meddling by inept politicians who haven't a clue what they are talking about. Artificial sweeteners are also harmful; saccharin for example is banned in States and others have been poorly researched.
A sugar tax will not improve anyone's health IMO.

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