Public health taxes: Should sugar-sweetened beverages be taxed? If so, how?

The authors contend that SSB taxes serve as regulatory measures intended to reduce sugar consumption and address externalities. In comparison with other regulatory non-fiscal tools (total ban/minimum price policy) or fiscal policies (rising VAT rates), excise duties better fit the extra-fiscal goals associated with public health. Consequently, they propose that SSB taxes should be designed as follows: (i) covering all kinds of sugar/sweeteners, avoiding the recourse to a closed list; (ii) levying specific excise taxes in proportion to the sugar content; (iii) ensuring obligatory pass-through of these taxes to consumers; and (iv) earmarking a portion of the revenue to support health programmes and preventive campaigns.