Application of excise taxes on sugar-sweetened beverages in Latin America and the Caribbean

The World Health Organization (WHO) identified a series of evidence-based, cost-effective solutions to prevent and control NCDs(1,2). Included among these is the recommendation to reduce sugar consumption through effective taxation on sugar-sweetened beverages (SSBs) (1-3). SSBs are all types of non-alcoholic beverages containing free sugars; these include carbonated or non-carbonated soft drinks, fruit or vegetable juices and drinks, liquid and powder concentrates, flavored water, energy and sports drinks, ready-to-drink tea, ready-to-drink coffee, and flavored milk drinks. They provide limited nutritional value, may lead to excessive caloric intake, and have been associated with negative health outcomes (4). Indeed, they have been singled out as the largest driver of the obesity epidemic (5), consuming SSBs is linked with weight gain in children and adults (6), a higher risk of hypertension and coronary heart disease (7), and the increased incidence of type 2 diabetes (8).

This data visualization presents information on the application of excise taxes on SSB across 27 Latin American and Caribbean countries participating in the SSB tax survey 2019 conducted by the Pan American Health Organization. It also presents the excise tax structure on SSBs in those countries applying excise taxes on SSBs. Use the navigation tool located on top of the visualization title to move from one to another information section. Detailed information will be shown by hovering the mouse over graphic objects.

As of March 2019, in Latin America and the Caribbean, 21 PAHO Member States apply excise taxes on SSBs, with 6 out of 14 countries in the Caribbean (data missing for Haiti) and 15 out of 19 countries in Latin America. Eleven countries do not apply excise taxes on SSBs, including Colombia, Cuba, the Dominican Republic, the Bolivarian Republic of Venezuela, and most Caribbean countries.

The tax structure varies among the 21 countries applying excise taxes on SSBs, where 10 countries use ad valorem excise taxes, seven countries apply amount-specific excise taxes, two countries apply combined excise taxes, and two countries apply mixed excise taxes on SSBs. 

References

  1. World Health Organization. Tackling NCDs: ‘Best buys’ and other recommended interventions for the prevention and control of noncommunicable diseases [Internet]. Geneva: WHO; 2017 [cited 2019 Apr 18]. Available from: https://apps.who.int/iris/handle/10665/259232
  2. World Health Organization. Technical Annex: Updated Appendix 3 of the WHO Global NCD Action Plan 2013-2020 [Internet]. Geneva: WHO; 2017 [cited 2019 Mar 4]. Available from: https://www.who.int/ncds/governance/technical_annex.pdf
  3. World Health Organization. Fiscal policies for diet and prevention of noncommunicable diseases: technical meeting report, 5-6 May 2015, Geneva, Switzerland [Internet]. Geneva: WHO; 2016 [cited 2019 Apr 20]. Available from: https://apps.who.int/iris/handle/10665/250131
  4. Woodward-Lopez G, Kao J, Ritchie L. To what extent have sweetened beverages contributed to the obesity epidemic?. Public Health Nutrition. 2011 Mar;14(3):499–509.
  5. Brownell KD, Frieden TR. Ounces of prevention—the public policy case for taxes on sugared beverages. N Engl J Med. 2009 Apr 30;360(18):1805–8.
  6. Malik VS, Pan A, Willett WC, Hu FB. Sugar-sweetened beverages and weight gain in children and adults: a systematic review and meta-analysis. Am J Clin Nutr. 2013 Oct 1;98(4):1084–102.
  7. Xi B, Huang Y, Reilly KH, Li S, Zheng R, Barrio-Lopez MT, Martinez-Gonzalez MA, Zhou D. Sugar-sweetened beverages and risk of hypertension and CVD: a dose–response meta-analysis. Br J Nutr. 2015 Mar;113(5):709–17.
  8. Imamura F, O’Connor L, Ye Z, Mursu J, Hayashino Y, Bhupathiraju SN, et al. Consumption of sugar-sweetened beverages, artificially sweetened beverages, and fruit juice and incidence of type 2 diabetes: systematic review, meta-analysis, and estimation of population attributable fraction. Br J Sports Med. 2016 Apr 1;50(8):496–504.