The Australian beverage industry has described a surprise decision by the UK government to introduce a tax on soft drinks as a step in the wrong direction in the fight against obesity.
Australian Beverages Council CEO, Geoff Parker said a growing body evidence from around the world demonstrated taxes on soft drink were ineffective in combating obesity.
When it comes to discretionary foods, he said, research shows soft drinks rank only seventh in kilojoule contribution, and provide a very small proportion of daily kilojoules.
“It is absurd to think this will solve obesity when soft drinks contribute just 1.7 per cent of the daily intake of kilojoules for Australian adults,” Parker said.
Parker also pointed to research from the McKinsey Global Institute that found that a 10 per cent tax on high-sugar products would be one of the least effective measures in combating obesity, ranking 14th of 17 intervention methods.
“There is still no evidence globally that a soft drink tax has any impact on obesity rates, In fact other European countries, like Denmark, have introduced and subsequently repealed a ‘fat’ tax within 18 months, due to its blatant ineffectiveness,” he said. “When implemented in Mexico, the tax only reduced dietary intake by six calories.
Last week, the news emerged that Britain would introduce a sugar levy on soft drinks in two years' time, just months after the government had ruled out a sugar tax.
The levy will be imposed on beverage companies and is calculated according to the sugar content in drinks. It is expected to raise about 500 million pounds ($704m) per year.
After the announcement, celebrity chef and sugar tax campaigner, Jamie Oliver, posted an online video in which he urged other countries including Australia to do the same.
"Pull your finger out, Australia," Oliver said.
Meanwhile, soft drink manufacturers are reportedly considering whether to mount a legal challenge against the UK government on the grounds that it is discriminatory, as it will not affect other beverages with a high sugar content, like milkshakes, fruit juice or coffee.
Soda taxes, moreover, are likely translate to job losses in the non-alcoholic drinks manufacturing sector, according to Parker, which in Australia alone employs around 46,000 people.
“Soft drinks can absolutely be enjoyed in moderation. Food and beverage consumption is a personal choice, not a revenue raiser,” Parker said.
