The Junk Food Tax: Public Health vs. The State Budget

Silvius Stanciu
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Silvius Stanciu: Dunărea de Jos University of Galați

SEA - Practical Application of Science, 2024, vol. XII, issue 36, 141-150

Abstract: The rise in junk food consumption is a concern for Romanian authorities, who introduced a "sugar tax" in 2024. This measure aims to improve public health by promoting healthier nutrition, combating obesity, preventing diet-related diseases, and encouraging healthy eating behaviors. This paper analyzes junk food taxation from an economic perspective and its effects on public health. It uses scientific papers and statistical data on health indicators from countries that have implemented similar taxes. While the additional tax raises the price of high-risk foods to reduce consumption, it also generates quick revenues for the state budget but may negatively impact employment and turnover in the food industry. The literature seems to suggest the reducing of sales for the taxed products, but there is no consensus on the long-term effectiveness of the tax on public health. Revenue from junk food taxes should be allocated to public education, healthcare, or sports promotion. Comparisons are drawn with other "sin taxes" (such as those on tobacco and alcohol), which generate quick budget revenues, but education and preventive measures are seen as more effective in reducing consumption over time. The long-term impact of the junk food tax on public health remains a topic of debate and research in the academic community.

Keywords: junk food; taxation; public health; public policy; Romania (search for similar items in EconPapers)
JEL-codes: H25 L66 Q18 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cmj:seapas:y:2024:i:36:p:141-150

DOI: 10.70147/s36141150

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