Sugar Tax Would Save Canadian Lives
March 17, 2017 Taxation in Canada
New research completed at the University of Waterloo has indicated that a 20 percent tax on sale of sugary drinks in Canada could save thousands of lives while also raising tax revenues.
It was concluded that if a tax of 20 percent was applied on the sale of all sugary drinks, including energy drinks and selected fruit juices, then the government would see tax revenues rise by CAD 1.7 billion per year, equating to approximately CAD 43.6 billion over the next 25 years.
Along with the extra tax revenues, the government would see savings of CAD 11.5 billion over the same timeframe, due to reduced expenditures on healthcare services.
The drop in spending would arise due to the prevention of as many as 600 000 cases of obesity, 200 000 cases of type 2 diabetes, and 60 000 cases of heart disease.
The study did not include any analysis of further benefits which may be derived if the extra tax revenues were re-invested back into health initiatives, but it was posited that the money could potentially allow for greater fiscal room for subsidizing health programs like subsidized fruits and vegetables or healthy school lunch programs.