Simulating international tax designs on sugar-sweetened beverages in Mexico.

In response to the high prevalence of overweight and obesity, Mexico implemented a volumetric tax of one Mexican peso (MP) per liter of sugar-sweetened beverage (SSB) in 2014. In contrast to Mexico's volumetric tax design, the United Kingdom (UK) and South Africa (ZA) implemented SSB taxes base...

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Autores principales:	Juan Carlos Salgado Hernández, Shu Wen Ng
Formato:	article
Lenguaje:	EN
Publicado:	Public Library of Science (PLoS) 2021
Materias:	Medicine R Science Q
Acceso en línea:	https://doaj.org/article/c5a5d9dfcc6548a89e60f06bafb1a641
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id	oai:doaj.org-article:c5a5d9dfcc6548a89e60f06bafb1a641
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spelling	oai:doaj.org-article:c5a5d9dfcc6548a89e60f06bafb1a6412021-12-02T20:17:48ZSimulating international tax designs on sugar-sweetened beverages in Mexico.1932-620310.1371/journal.pone.0253748https://doaj.org/article/c5a5d9dfcc6548a89e60f06bafb1a6412021-01-01T00:00:00Zhttps://doi.org/10.1371/journal.pone.0253748https://doaj.org/toc/1932-6203In response to the high prevalence of overweight and obesity, Mexico implemented a volumetric tax of one Mexican peso (MP) per liter of sugar-sweetened beverage (SSB) in 2014. In contrast to Mexico's volumetric tax design, the United Kingdom (UK) and South Africa (ZA) implemented SSB taxes based on sugar density. This kind of tax is likely to yield larger health benefits than volumetric taxes by imposing a larger tax burden on high-sugar SSB and/or encouraging reformulation. However, sugar-density taxes might yield lower tax revenues. This study aims to simulate the effect of sugar-density taxes as those in the UK and ZA on SSB purchases (in terms of volume and sugar), SSB prices, and tax revenue in Mexico and compare this effect to its counterpart under the current volumetric SSB tax. Additionally, we simulate the effect of sugar-density taxes under different scenarios of reformulation. We conducted all these simulations based on a structural model of demand and supply using household purchase data for 2012-2015 in urban Mexico. We found that the current volumetric one-MP tax led to an SSB purchase reduction of 19% for both volume and sugar and an SSB price increases by MP $1.24. We simulated similar effects under the UK and ZA sugar-density taxes when these taxes were equivalent to the volumetric one-MP tax, and there was no reformulation. When assuming reformulation, the sugar reduction under the sugar-density taxes was up to twice larger than the volumetric one-MP tax. However, we found that the volumetric one-MP tax yielded the largest tax revenue across all tax designs. From a public health perspective, sugar-density taxes are likely to be more effective in tackling the overweight and obesity prevalence in Mexico; however, tax revenue might be lower under these taxes.Juan Carlos Salgado HernándezShu Wen NgPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 8, p e0253748 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Medicine R Science Q
spellingShingle	Medicine R Science Q Juan Carlos Salgado Hernández Shu Wen Ng Simulating international tax designs on sugar-sweetened beverages in Mexico.
description	In response to the high prevalence of overweight and obesity, Mexico implemented a volumetric tax of one Mexican peso (MP) per liter of sugar-sweetened beverage (SSB) in 2014. In contrast to Mexico's volumetric tax design, the United Kingdom (UK) and South Africa (ZA) implemented SSB taxes based on sugar density. This kind of tax is likely to yield larger health benefits than volumetric taxes by imposing a larger tax burden on high-sugar SSB and/or encouraging reformulation. However, sugar-density taxes might yield lower tax revenues. This study aims to simulate the effect of sugar-density taxes as those in the UK and ZA on SSB purchases (in terms of volume and sugar), SSB prices, and tax revenue in Mexico and compare this effect to its counterpart under the current volumetric SSB tax. Additionally, we simulate the effect of sugar-density taxes under different scenarios of reformulation. We conducted all these simulations based on a structural model of demand and supply using household purchase data for 2012-2015 in urban Mexico. We found that the current volumetric one-MP tax led to an SSB purchase reduction of 19% for both volume and sugar and an SSB price increases by MP $1.24. We simulated similar effects under the UK and ZA sugar-density taxes when these taxes were equivalent to the volumetric one-MP tax, and there was no reformulation. When assuming reformulation, the sugar reduction under the sugar-density taxes was up to twice larger than the volumetric one-MP tax. However, we found that the volumetric one-MP tax yielded the largest tax revenue across all tax designs. From a public health perspective, sugar-density taxes are likely to be more effective in tackling the overweight and obesity prevalence in Mexico; however, tax revenue might be lower under these taxes.
format	article
author	Juan Carlos Salgado Hernández Shu Wen Ng
author_facet	Juan Carlos Salgado Hernández Shu Wen Ng
author_sort	Juan Carlos Salgado Hernández
title	Simulating international tax designs on sugar-sweetened beverages in Mexico.
title_short	Simulating international tax designs on sugar-sweetened beverages in Mexico.
title_full	Simulating international tax designs on sugar-sweetened beverages in Mexico.
title_fullStr	Simulating international tax designs on sugar-sweetened beverages in Mexico.
title_full_unstemmed	Simulating international tax designs on sugar-sweetened beverages in Mexico.
title_sort	simulating international tax designs on sugar-sweetened beverages in mexico.
publisher	Public Library of Science (PLoS)
publishDate	2021
url	https://doaj.org/article/c5a5d9dfcc6548a89e60f06bafb1a641
work_keys_str_mv	AT juancarlossalgadohernandez simulatinginternationaltaxdesignsonsugarsweetenedbeveragesinmexico AT shuwenng simulatinginternationaltaxdesignsonsugarsweetenedbeveragesinmexico
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Simulating international tax designs on sugar-sweetened beverages in Mexico.

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