Health and Distributional Effects Taxing Sugar-Sweetened Beverages

Fuchs, Alan; Mandeville, Kate; Alonso-Soria, Ana Cristina

Health and Distributional Effects Taxing Sugar-Sweetened Beverages

Autores

Fuchs, Alan

Mandeville, Kate

Alonso-Soria, Ana Cristina

Editor

World Bank, Washington, DC

Descripción

Consumption of sugar-sweetened beverages (SSBs) has been linked to a range of noncommunicable diseases (NCDs), including diabetes, obesity, cardiovascular disease, and over 12 types of cancer (Singh, et al. 2015). Increasingly, governments around the world are taxing SSBs to curb sugar consumption. However, especially in low and middle-income countries, concern is growing over the apparent regressive character of consumer taxes. This note contributes to the literature on the effect of taxes on unhealthy products. The extended cost-benefit analysis (ECBA) methodology is applied to assess distributional effects of an increase of SSB taxes on household expenditures, out-of-pocket (OOP) medical expenses, and productivity in Kazakhstan. Results suggest that the long-term net income effect of an increase in SSB taxes is progressive: lower-income deciles benefit relatively more than higher-income deciles.

Palabras clave

TAXATION, DISTRIBUTIONAL IMPACT, CONSUMPTION TAX, HOUSEHOLD CONSUMPTION, HEALTH CARE EXPENDITURE, NEGATIVE INCOME SHOCK, NON-COMMUNICABLE DISEASES, YEARS OF LIFE LOST, PRICE ELASTICITY