How fizzy drink tax might work
Stinging manufacturers and importers of sugary soft drinks is the best way to go about a sugar tax in New Zealand, a tax expert says.
‘‘They would increase their prices, pass the burden on to retailers and wholesalers, and they in turn would pass the burden of tax on to consumers,’’ Auckland University tax lawyer Michael Littlewood told a conference in Wellington.
That would be the most straightforward way to approach a sugar tax, he said.
‘‘Manufacturers and importers are a relatively small number, and so the burden of compliance would be light.’’
Littlewood proposed a per-unit tax on sugar, and suggested a $1 per litre charge would be reasonable and mean pricier, smaller cans of Coca-Cola were not targeted more than large, lowcost bottles.
He was speaking at a Wellington symposium run by lobby group Fizz, made up of a collection of researchers and doctors who want to eliminate sugary drinks from New Zealand by 2025.
But food and drinks councils are dead against the idea, and say a sugar tax won’t work in the fight against obesity.
Despite regular soft drink consumption slowly declining, obesity continues to rise, according to research commissioned and released by the New Zealand Beverage Council and carried out by independent research company Nielsen.
‘‘That means there are clearly other factors at play,’’ president Olly Munro said.
The Food and Grocery Council agrees. Chief executive Katherine Rich said soft drinks were being used as a scapegoat for a complex problem.
‘‘Taxing or banning sugar drinks won’t work,’’ Rich said. Tackling obesity needed to concentrate on food literacy and moderation, rather than ‘‘blaming individual foods and drinks’’, she said.
‘‘You can’t tax or regulate people slim.’’