EconPapers    
Economics at your fingertips  
 

The economic and health impact of a tax on sugar sweetened beverages (SSBs) in South Africa

Charity Gomo and Laura Birg

No 356, Center for European, Governance and Economic Development Research Discussion Papers from University of Goettingen, Department of Economics

Abstract: Background/Objectives: The increased consumption of sugar sweetened beverages (SSBs) has been associated with risks of obesity, and corresponding risks of type 2-diabetes, cancer, and cardiovascular disease. In order to reduce the intake of these beverages, the South African government has recently introduced a tax on SSBs. Methods: This paper evaluates the economic and health impact of the recently introduced tax on sugar sweetened beverages in South Africa, by constructing a microsimulation model using the South African Income and Household Survey (IES 2010/11) as the main data set. Results and conclusion: The overall results indicate that a 10% SSB tax will lead to a substantial reduction in consumption of carbonated soft drinks by about 27% and minor reductions in other SSB categories. Results also indicate that the 10% SSB tax can generate about ZAR 14.5 billion (USD 1.08 bn) in government tax revenue annually. In addition, simulation results show that the SSB tax would result in an average reduction in energy intake by 16.97 kj/person/day.

New Economics Papers: this item is included in nep-hea
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/184670/1/104038241X.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:cegedp:356

Access Statistics for this paper

More papers in Center for European, Governance and Economic Development Research Discussion Papers from University of Goettingen, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2019-09-20
Handle: RePEc:zbw:cegedp:356