Health and Distributional Effects Taxing Sugar-Sweetened Beverages
Consumption of sugar-sweetened beverages (SSBs) has been linked to a range of noncommunicable diseases (NCDs), including diabetes, obesity, cardiovascular disease, and over 12 types of cancer (Singh, et al. 2015). Increasingly, governments around the world are taxing SSBs to curb sugar consumption. However, especially in low and middle-income countries, concern is growing over the apparent regressive character of consumer taxes. This note contributes to the literature on the effect of taxes on unhealthy products. The extended cost-benefit analysis (ECBA) methodology is applied to assess distributional effects of an increase of SSB taxes on household expenditures, out-of-pocket (OOP) medical expenses, and productivity in Kazakhstan. Results suggest that the long-term net income effect of an increase in SSB taxes is progressive: lower-income deciles benefit relatively more than higher-income deciles.
Main Authors: | , , |
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Format: | Brief biblioteca |
Language: | English |
Published: |
World Bank, Washington, DC
2020-06
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Subjects: | TAXATION, DISTRIBUTIONAL IMPACT, CONSUMPTION TAX, HOUSEHOLD CONSUMPTION, HEALTH CARE EXPENDITURE, NEGATIVE INCOME SHOCK, NON-COMMUNICABLE DISEASES, YEARS OF LIFE LOST, PRICE ELASTICITY, |
Online Access: | http://documents.worldbank.org/curated/en/166111591327025410/Health-and-Distributional-Effects-Taxing-Sugar-Sweetened-Beverages-the-case-of-Kazakhstan https://hdl.handle.net/10986/33859 |
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Summary: | Consumption of sugar-sweetened beverages
(SSBs) has been linked to a range of noncommunicable
diseases (NCDs), including diabetes, obesity, cardiovascular
disease, and over 12 types of cancer (Singh, et al. 2015).
Increasingly, governments around the world are taxing SSBs
to curb sugar consumption. However, especially in low and
middle-income countries, concern is growing over the
apparent regressive character of consumer taxes. This note
contributes to the literature on the effect of taxes on
unhealthy products. The extended cost-benefit analysis
(ECBA) methodology is applied to assess distributional
effects of an increase of SSB taxes on household
expenditures, out-of-pocket (OOP) medical expenses, and
productivity in Kazakhstan. Results suggest that the
long-term net income effect of an increase in SSB taxes is
progressive: lower-income deciles benefit relatively more
than higher-income deciles. |
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