Fizzed Out: New Report Corrects Recent Misinformation About Sugar Taxes

9 JULY 2015

Nielsen sales data, today released publicly for the first time in New Zealand, shows that Mexican sales of sugar sweetened beverages have not moved, despite the introduction of a sugar tax.

The Taxpayers’ Union is today launching a report which corrects the recent claims of New Zealand campaigners about the effectiveness of sugar taxes in curbing obesity.

While Auckland University’s public health activists are choosing to use interview data which supports their campaign, the real sales data does not lie.

Fizzed out: Why a sugar tax won’t curb obesity, sets the record straight, and examines honestly whether taxes on food and drink, such as that introduced in Mexico, are likely to reduce consumption and affect obesity rates.

Key findings:

• Mexico’s tax on soda resulted in no decrease in consumption, despite recent claims to the contrary by New Zealand campaigners
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• New Zealanders' consumption of sugar and sugar sweetened beverages is trending downward
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• Only 1.6 per cent of New Zealanders' total energy intake comes from the added sugar content of sugar sweetened non-alcoholic beverages
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• New Zealanders are still getting fatter despite consuming less, suggesting that we’re not burning as many calories
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• Sugar taxes hurt the poor and do not result in the decreased consumption tax-supporters claim
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• Similar taxes overseas have not worked
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The report is available to view and download from the Taxpayers' Union website. Hard copies are also available on request.

Taxpayers’ Union Executive Director, Jordan Williams, says:

"This report confirms what many suspected. A tax on soda will raise a lot of revenue for politicians but do little, if anything, in terms of reducing obesity.”

"Singling out a product that is responsible for only 1.6% of Kiwi’s energy intake is symbolism, not effective public policy. We all agree obesity is a problem, but the evidence is that sugar taxes do very little to improve public health."

“The report publishes Nielsen sales figures which show recent claims that the Mexican tax on sugar sweetened drinks has resulted in decreased consumption are simply untrue. Auckland University’s public health activists are choosing to use interview data which supports their campaign rather than real sales data that does not lie."

The report's author Joshua Riddiford, says:

"Proposing a 20 per cent tax on sugar, as some groups have suggested, appears to be more about value judgements on sugar than actually helping New Zealanders towards better health outcomes."

The report includes a foreword by Christopher Snowdon of Britain’s Institute of Economic Affairs. Mr Snowdon says:

"A sugar tax is attractive to politicians because it allows them to engage in mass pick-pocketing with a sense of moral superiority. They need to be reminded that there is nothing moral about introducing a regressive stealth tax when you know that demand is inelastic. Taxing food and drink won’t make the poor healthier, but it will certainly help to ensure they stay poor."

"It is not good enough to say that anything is worth a try in the campaign against obesity. A policy that is known to incur significant costs without reaping any measurable rewards is a policy that should be rejected."

ENDS

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