Will Soda Tax be Able to Curb Consumption of Fast Food and Sugary Drinks?

Published By : 14 Jul 2016 | Published By : QYRESEARCH

Pizzas and burgers have been witnessing a decreased demand amid the growing awareness about healthy eating. The rising awareness about the presence of trans fats and their ill effects on health including coronary heart disease, obesity, diabetes, and hypertension have led to an rising number of consumers opting for healthier options such as salads and sandwiches. An increasing number of countries are viewing fast food and soft drinks as the reasons behind the rising prevalence of obesity among young adults. As a result, taxes are being levied upon the sales of such food and beverages to curb their consumption.

India Joins the Fight against Fast Food

Recently, in India, the government in Kerala has introduced a 14.5% tax on the consumption of fast food. The government has announced to generate taxes worth Rs 10 crore from this new tax. However, it is still under speculation that whether the implementation of this tax would serve the real purpose of curbing the sales of fast food among young adults. Mexico has been among the pioneers in implanting soda tax and has increased the prices of junk food by 8% and has added a surcharge on the sales of carbonated drinks. It is interesting to note that in spite of intense pressure from fast food manufacturers and soda companies, the Mexican government went ahead with the implementation of the tax. According to the National Institute of Public Health in Mexico, there has been 5% decline in the consumption of fast food among the middle and lower middle classes. 

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