Home / AMERICAN NEWS / Do Soda Taxes Work? A New Report Says Yes

Do Soda Taxes Work? A New Report Says Yes

Photo courtesy of flickr.

Photo courtesy of flickr.

With obesity and diabetes rates skyrocketing around the globe, law makers are stepping in and trying to encourage consumers to make better choices with regulation.  Some countries and cities have tried to implement a soda tax, but very few have managed to actually get them in place.

Photo courtesy of Imgur.

Photo courtesy of Imgur.

However, Mexico managed to implement such a tax in January of 2014. Under their soda tax, all sugary drinks went up by 1 peso (7 cents). As it turns out, the tax may have worked.

According to a preliminary study by the Mexican National Institute of Public Health and the Carolina Population Center at the University of North Carolina , Chapel Hill, the tax is working. However, the study has not yet been published or peer reviewed.

The study, which  analyzed data on household consumption of sugary drinks in 53 Mexican cities, found that consumption of such drinks decreased by 6 percent when compared to pre soda tax numbers.

According to Goats and Soda, Mexico drinks the fourth most soda in the world behind Chile, the United States and Argentina.

The main problem with assessing how well these soda taxes may or may not work is that so few countries manage to pass them. That means there is very little data to analyze to see how effective they are. This study could give us our first real indication though.

Another benefit that the study found was that people are drinking more water since the implementation of the soda tax.

Currently,  Mexico’s Nutritional Health Alliance is pushing to increase the tax from 10 percent to 20 percent, given the results that have been shown.

Do Soda Taxes Work? A New Report Says Yes 

About Ryan Scott