Taxation of Soft and Energy Drinks

At a time when the obesity epidemic and related chronic diseases are on the rise around the world, sugar-sweetened beverages (SSB) are being fingered as a key contributing factor. Consequently, the idea of imposing a tax on these products is growing in popularity.

Why target soft and energy drinks?

The scientific literature is clear: SSB are harmful to health. Their consumption has been linked to:

• the obesity epidemic
• type 2 diabetes
• metabolic syndrome
• dental health
• bone health

Plus, the application of a tax on these products in Quebec is facilitated by the fact that soft drinks are already defined under the province’s regulations.

Public finances

The healthcare system is proving extremely costly for government and citizens.

• According to the latest data available [1], obesity apparently cost Quebecers $700 million, which represents 5.8% of the province’s health budget. This same study estimated at more than $800 million the lost productivity related to this.
• According to the Society of Actuaries, obesity costs Canadians $30 billion each year in medical care and lost productivity [2].

[1] Colman, R. & Dodds, C. (2000, November). Cost of obesity in Quebec. Genuine Progress Index: Measuring sustainable development. GPI Atlantic. Consulted at http://www.aetmis.gouv.qc.ca/site/download.php?f=e2099440704cba389b199a1be6568226 et disponible ici http://www.gpiatlantic.org/pdf/health/obesity/que-obesity.pdf

[2] Behan, D.F. & Cox, S.H. (2010). Obesity and its Relation to Mortality and Morbidity Costs. Society of Actuaries. Consulted at http://www.soa.org/files/pdf/research-2011-obesity-relation-mortality.pdf