Soda tax

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Soda tax

Soda tax (pronunciation: /ˈsoʊdə tæks/), also known as sugar tax or sweetened beverage tax (SBT), is a tax or surcharge designed to reduce consumption of drinks with added sugar.

Etymology

The term "soda tax" is derived from the word "soda", a common term for carbonated beverages in some regions, and "tax", a compulsory contribution to state revenue. The term "sugar tax" is used to emphasize the tax's purpose of discouraging excessive sugar consumption.

Definition

A soda tax is a tax or surcharge levied on the sale of sugar-sweetened beverages. This includes, but is not limited to, carbonated soft drinks, sports drinks, energy drinks, fruit drinks, and sweetened iced teas. The tax is typically set per volume, such as cents per ounce.

Purpose

The primary purpose of a soda tax is to discourage the consumption of beverages with high sugar content. These drinks are associated with obesity, diabetes, tooth decay, and other health problems. By increasing the price, it is hoped that people will make healthier beverage choices.

Implementation

Soda taxes have been implemented in various jurisdictions around the world, including parts of the United States, Mexico, and the United Kingdom. The impact of the tax varies, depending on factors such as the tax rate and the behavior of consumers and beverage companies.

Controversy

The implementation of a soda tax is often controversial. Supporters argue that it can improve public health and provide a source of government revenue. Critics argue that it is regressive (disproportionately affecting low-income individuals), ineffective, and infringes on personal freedom.

Related terms

External links

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