Analyzing UK's Soda Tax and its Benefits

The regular consumption of soda is a major risk factor of diabetes, heart disease and obesity. A single 12-ounce serving can pack up to 40 grams of sugar, which is more than the daily allowance recommended by the American Heart Association (AHA). Furthermore, many people drink two, three or even more sodas per day, amplifying the risk of serious disease and illness. Well, the U.K. government has passed a new "soda tax" that's expected to take effect April 2018.

The proposed soda tax applies to all sodas and sweetened beverages with 5-8 grams of sugar per 100 ml of beverage, as well as a higher-scale tax on high-sugar drinks with 8 or more grams of sugar per 100 ml of beverage. The purpose of this tax is to encourage more responsible consumption of soda while reducing the risk of serious disease and illness in the process.

Some people may turn their heads at the thought of paying taxes to drink soda, but a recent study published in The Lancet Public Health has shed light on the proposed soda tax's benefits.

Researchers found that the U.K.'s soda tax will affect the soda industry in several different ways. For starters, researchers believe the tax will prompt soda companies to reduce the sugar content in their high-sugar drinks by approximately 30%, as well as reduce their sugar content in mid-sugar drinks by approximately 15%. Subsequently, this could reduce the number of type 2 diabetes cases by roughly 19,000 and dental decay cases by nearly 27,000. More so, children are expected to benefit the most from the new soda tax.

Children are likely to be benefit most, however the study also shows that the health benefits of the tax could be reduced if industry responds by increasing the price across their drinks range (including zero sugar/diet drinks, bottled water, and fruit juice) or if heavy marketing led consumers to switch from low to mid-sugar drinks.

"Our study provides the first estimates of the likely health impact of the UK soft drinks levy. The good news is that our study suggests that all of the most likely industry responses to the tax including reducing sugar content of soft drinks, raising prices of high-sugar drinks and increasing the market share of low-sugar drinks have the potential to improve health by reducing rates of obesity, diabetes and tooth decay," explained Dr. Adam Briggs, one of the study's lead researchers and authors.