Sugar Tax Will Raise $400 Million in Australia
April 14, 2016 Taxation in Australia
CANBERRA – Sugar taxes would save the lives of thousands of Australians while raising tax revenues by approximately AUD 400 million.
The results of new research released on April 13th in the international journal PLOS One has shown that implementing a tax on the sale of sugar sweetened beverages in Australia would lead to a significant boost to tax revenues while also reducing the instance of diabetes.
It was estimated that a 20 percent tax on any sugar sweetened beverage would reduce the average sugar consumption in the country to 124 grams per day for males, and 67 grams for females, down from the current levels of 141 grams per day and 76 grams per day for males and females respectively.
The reduced consumption of sugar would result in weight loss, and would cut the number of new cases of type 2 diabetes by 800 per year.
Further, within 25 years of the implementation of the tax, there will be 4 400 less cases of heart disease, 1 100 less people suffering from the effects of strokes, and an estimated 1 600 extra people alive.
In addition to the health benefits, the tax will raise an approximate AUD 400 million in extra tax revenues per year, and would reduce healthcare expenditures by AUD 609 million.
Photos By: Jannes Pockele