Latest data shows Mexico’s sugar tax is a failure

If a government’s aim is to raise large amounts of tax, then the Mexican tax has been a roaring success. But if the aim is to affect consumption and reduce obesity, it’s been a massive failure.
If a government’s aim is to raise large amounts of tax, then the Mexican tax has been a roaring success. But if the aim is to affect consumption and reduce obesity, it’s been a massive failure.

Scoop

Latest sales data shows Mexico’s tax on sugar-sweetened sodas has made almost no difference to buyer behavior two years after it was introduced, says the New Zealand Food and Grocery Council.

“Pro-sugar tax campaigners continue to repeat that the sugar tax, which was applied from Jan. 1, 2014, has been a success in terms of reducing consumption of sugar-sweetened sodas,” says FGC Chief Executive Katherine Rich.

“This does not reflect the true situation in Mexico post the tax,” she said. “The latest Nielsen data, compiled for FGC, shows sales volumes have returned to pre-tax levels.

“The overall net decline in sales of 0.39 percent is not even one sip per Mexican citizen and is more likely to be attributed to other things going on in the Mexican economy during this time.”

http://www.scoop.co.nz/stories/PO1603/S00306/sales-data-shows-mexico-sugar-tax-a-failure.htm

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