Global Coverage and Design of Sugar-Sweetened Beverage Taxes

Abstract

Importance: Sugar-sweetened beverage (SSB) taxes are gaining in popularity. The lack of a comprehensive repository of standardized data on SSB taxes and their designs, however, has stymied understanding of current practice in SSB taxes. Objective: To assess the coverage and design of SSB taxes worldwide using the new Global SSB Tax Database. Evidence Review: Sugar-sweetened beverage taxes were collated from existing data sources, hand-searching of peer-reviewed and gray literature, and an internet search. Relevant legislation was identified to verify each tax and extract data on designs. Findings: A total of 118 taxes were verified, including 105 national and 13 subnational taxes. National SSB taxes are in effect in 103 countries and territories, covering 51% of the world's population. A total of 67% of people living in low-income and 73% in lower-middle-income economies are covered by national SSB taxes, compared with 29% in upper-middle-income and high-income economies. National SSB taxes cover 98% of the population in South Asia compared with only 10% in East Asia and the Pacific. Most SSB taxes are excise taxes (104 of 118 [88%]). Excise taxes in high-income economies are mostly specific (27 of 36 [75%]), whereas ad valorem and mixed taxes are more common in low- and middle-income economies (36 of 66 [55%]). Most specific excise taxes are based on volume only (54 of 59 [92%]), with just 3 jurisdictions applying purely sugar-specific excise taxes. More than half of excise taxes worldwide (55 of 104 [53%]) apply tiered rates, with tiers more commonly defined by beverage type (41 of 55 [75%]) than by sugar content (18 of 55 [33%]). Tiers defined by sugar content are mainly used in high-income countries (13 of 18 [72%]) and Europe and Central Asia (10 of 18 [56%]). Almost one-third of excise taxes worldwide (30 of 104 [29%]) and almost half of excise taxes in low- and middle-income economies (28 of 66 [42%]) apply to unsweetened bottled water. Conclusions and Relevance: This study provides a comprehensive review of global coverage and design of SSB taxes. Sugar-sweetened beverage tax coverage is higher than previously reported, with clear differences in designs between regions and income groups. These findings can inform a more empirically grounded approach to SSB tax guidance..