Conceptual framework for the evaluation of sugar tax systems

Marese Lombard and Alta Koekemoer

South African Journal of Accounting Research, 2020, vol. 34, issue 1, 63-90

Abstract: The World Health Organization has urged countries to implement a sin tax on items containing high levels of sugar to address the current worldwide obesity epidemic. Consequently, sugar taxes have become increasingly popular. However, many sugar tax systems are implemented without considering whether these systems are appropriate in addressing the obesity problem or are sustainable in the long run. In order for a tax system to be sustainable, it has to be compliant with the principles of a good tax system. These principles, however, are general in nature and have not been adapted for a sugar tax system. This article shows the modification of general principles of a good tax system to be specifically applicable to that of a sugar tax system. The modified tax principles can be applied to determine whether a sugar tax system is the appropriate tool to address obesity as well as its sustainability in future. A conceptual framework is established by using chain of referral sampling in order to identify modern tax principles. These principles are adapted to fit a sugar tax system by determining the influence of various sugar tax system design types on these principles. The conceptual framework provides guidelines to legislators regarding the development of such a system depending on the importance of each principle. Since the principles are sometimes oppositional in nature, trade-offs between the principles are inevitable. The framework does, however, provide guidance as to what could possibly be regarded as a highly acceptable option.

Date: 2020
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DOI: 10.1080/10291954.2019.1667637

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