Following the repeal of the short-lived Prepare dinner County, Illinois Sweetened Beverage Tax, gross sales of sweetened drinks went proper again to the place they have been earlier than the tax went into place, based on a brand new research led by researchers on the College of Illinois Chicago. The research is printed in JAMA Community Open.
The tax, which included each sugar-sweetened and artificially-sweetened food regimen drinks, was largely pitched as a solution to cut back county funds deficits. The tax lasted simply 4 months—it went into impact on Aug. 2, 2017 and ended on Dec. 1, 2017.
“We all know that the tax labored to deliver down demand for sweetened drinks considerably whereas it was in place,” mentioned Lisa Powell, UIC distinguished professor and director of well being coverage and administration on the Faculty of Public Well being and lead writer of the paper. “The repeal of the Prepare dinner County Sweetened Beverage Tax was a missed public well being alternative. If it had stayed in place, we might have seen a long-lasting discount in consumption of sweetened drinks, that are linked to weight problems, Sort 2 diabetes and heart problems which, in flip, have lately been discovered to be related to elevated danger of extreme sickness from COVID-19.”
Earlier analysis by Powell and colleagues confirmed that whereas the tax was in impact, it labored to deliver down quantity bought of sweetened drinks by 27% in Prepare dinner County, with a web impact of 21% after taking into consideration cross-border buying in response to the tax.
Within the new research, Powell and Julien Leider, a senior analysis specialist on the UIC Institute for Well being Analysis and Coverage, in contrast the worth and quantity of sweetened drinks bought in Prepare dinner County within the two years earlier than the tax, through the 4 months the tax was in place and within the eight months after the tax was repealed relative to St. Louis, Missouri, which didn’t have an identical tax.
Using a special analytical technique than they used of their earlier analysis, Powell and Leider discovered that sweetened drinks elevated in worth by 1.13 cents per fluid ounce in Prepare dinner County whereas the tax was in place. After the repeal of the tax, the worth dropped 1.19 cents per fluid ounce. In addition they discovered that the quantity of sweetened drinks bought in Prepare dinner County dropped by about 26% below the tax and elevated by about 30% after the tax was repealed. Finally, there was no web change within the quantity of sweetened drinks bought pre-tax in comparison with after the tax was repealed.
“Quantity of sweetened drinks bought in Prepare dinner County went proper again to pre-tax ranges following the repeal of the tax,” Powell mentioned.
Powell notes that the outcomes recommend that the tax labored to deliver down demand for sweetened drinks by worth level alone and didn’t seem to alter perceptions concerning the harms linked to consuming sugary drinks. Public messaging concerning the tax, centered totally on proceeds getting used to deal with budgetary deficits moderately than on public well being.
“We do not know if public messaging have been extra centered on well being advantages if there would have been some lasting influence of the tax, however because it stands, we see that the substantial influence from the tax absolutely disappeared as soon as it was repealed,” Powell mentioned.
Lisa M. Powell et al. Analysis of Modifications in Beverage Costs and Quantity Bought Following the Implementation and Repeal of a Sweetened Beverage Tax in Prepare dinner County, Illinois, JAMA Community Open (2020). DOI: 10.1001/jamanetworkopen.2020.31083
College of Illinois at Chicago
Sweetened beverage gross sales bounced again rapidly after Prepare dinner County tax repealed (2020, December 30)
retrieved 30 December 2020
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