Potential Soda Tax ‘A Lazy Way to Fight Obesity’

The Australasian c-store association pointed out that “better health outcomes are not achieved by taxing certain customers.”

June 23, 2016

MELBOURNE, Australia – With organizations and some politicians clamoring for a tax on sugar-sweetened drinks, the Australasian Association of Convenience Stores (AACS) has slammed the move as a lazy way to address a complex problem, the Herald Sun reports. The Greens, one of the groups supporting the levy, has proposed a 20% flat tax on sugary beverages to stem the rise of obesity in the country.

However, those measures are missing the real picture, said Jeff Rogut, CEO of AACS. “Better health outcomes are not achieved by taxing certain consumers and placing additional burdens on small businesses,” he said. “The only available evidence suggests that education, potentially in the form of wellness and awareness programs, is the most effective way to achieve improved health outcomes.”

A tax on sugar-sweetened beverages would only hurt smaller retailers like convenience stores and not solve the problem of obesity. “There is no rational basis to believe increasing taxes on certain products will result in improved health outcomes. Tobacco is a prime example. As the government continues to raise excise on legal tobacco, more and more consumers are simply switching to cheaper alternatives and the illegal tobacco market continues to flourish, fueling alarming health and safety consequences for the broader community,” Rogut said.

He would rather see support of consumer demand for healthier options, noting that convenience stores in Australia are already bringing better-for-you foods and beverages to their customers. “Applying a tax to certain items because those items have an emotional association to obesity in the minds of some groups is not only flawed, it’s shortsighted and lazy. It’s also economically destructive,” Rogut said. “The economic ramifications for manufacturers, suppliers and retailers would be immense, yet the potential for such measures to achieve ¬improved health outcomes is unknown.”

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