Forum stirs sugar debate
United Kingdom sugar tax revenues have disappointed the British Exchequer thanks to aggressive product reformulation by soft drink producers.
Predictions in 2016 suggested £520 million (NZ$995m) would come in from sugar-sweetened beverage makers once the tax was introduced. Instead, it’s now expected to raise about half.
It was a disappointment to the UK taxman, as the projected tax revenue was already targeted at sport in schools.
The tax shortfall was due to drinks makers drastically reducing the sugar content of their products, to come in under the highest sugar tax level.
The sugary drinks industry in New Zealand is fighting a rearguard action against a sugar tax here, a measure which now appears to be supported by the majority of Kiwis.
The International Council of Beverages Associations Pacific head Geoff Parker flew in to denounce sugar taxes as ineffective just as the FIZZ Forum was held in Auckland.
FIZZ is a not-for-profit organisation set up by health academics with the stated aim of taking New Zealand
2025.
The health harm from soft drinks is so high, banning them would be justified, FIZZ members believe.
FIZZ supports a sugar tax, but member Gerhard Sundborn, from the University of Auckland, doesn’t expect this to happen during the current government term, as Prime Minister Jacinda Ardern has committed to introducing no new taxes before the next election. sugary drink-free by
‘‘It’s not the first time I have walked into the lions’ den, and I think it won’t be the last,’’ said Parker, who claims soft-drinks makers are being unfairly targeted.
Echoing a just-released report by the Taxpayers’ Union, he said the evidence that sugar taxes had a discernible impact on public health was weak.
‘‘Should we not be needing a high standard of evidence and vigilance before these types of policies are brought in?’’
Sundborn said that before the UK tax came in, drinks makers had already reformulated their drinks to remove the equivalent of 30,000 tonnes of sugar.
‘‘It provided a really strong incentive for industry to reform,’’ he said.
He believed New Zealand would join the march of nations to tax sugar.
The obesity epidemic took four decades to reach the current crisis level. It will take time to unwind it, even if it is possible.
‘‘It’s not the first time I have walked into the lions’ den.’’