iscover Taxing the ‘fridge ciggy’: WHO pushes for ‘sugar tax’ on soft drinks
TaxWith the trend of the “fridge cigarette” picking up momentum on social media, the World Health Organisation is calling for taxes to be raised on fizzy, sugary drinks to fight the battle against poor diet choices.
We’re all aware of the health risks associated with soft drinks, but let’s be honest – when that 3pm slump hits, there really is nothing better than a “fridge ciggy” (a crisp, cold can of Coke from the back of the fridge).
With tax reform being the hot topic of choice among accounting and tax professionals, the World Health Organisation (WHO) is adding another tax requirement into the mix that may go down like a lead balloon with soft drink fans.
Data from the WHO revealed alcoholic and sugary drinks had become steadily cheaper in many countries since 2022, leading to the organisation calling for change as poor diets and health conditions continue to surge.
According to the WHO report, only 42 per cent of countries applied levies for sugary, carbonated drinks in an effort to deter people from consuming them.
The health organisation shared its strong belief that an added tax on both alcoholic and sugary drinks should be applied, and would be effective in deterring more people from buying them.
Currently, Australia only applies an alcohol excise, yet has no added tax on sugary drinks, which increases risks of obesity, diabetes, heart disease and cancer.
The report also delved into the potential avenues the revenue from such a tax could go towards, such as development aid and public debt.
WHO director-general Tedros Ghebreyesus said he understood that health taxes were “not a silver bullet, and they’re not simple”.
“They can be politically unpopular and they attract opposition from powerful industries with deep pockets and a lot to lose, but many countries have shown that when they’re done right, they’re a powerful tool for health.”
A poll was posted by LinkedIn News in relation to the WHO’S call for the “sugar tax”, and attracted various comments from industry professionals claiming “yeah, nah, we don’t need more taxes” and that it would become a “regressive tax”.
One commenter said: “We’ve already seen something similar with cigarettes – prices increased and people still bought them, then vapes became widespread and easier for kids to access. If people want something, they’ll find a way to get it.”
In contrast to this, another commenter shared: “When I started my first job at Hungry Jacks in 1994, they told us during training it cost 8c per litre to make soft drinks, so to push them as much as possible. The markup on soft drinks is insane. A tax is more than reasonable.”
The WHO said it expected the tax initiative to raise $1 trillion by 2035, based on evidence from health taxes in Colombia and South Africa.
Imogen Wilson
Imogen Wilson is a journalist at Accountants Daily and Accounting Times, the leading sources of news, insight, and educational content for professionals in the accounting sector. Imogen is also the host of the Accountants Daily Podcasts, Under the Hood and Accountants Daily Insider.
Previously, Imogen has worked in broadcast journalism at NOVA 93.7 Perth and Channel 7 Perth. She has multi-platform experience in writing, radio, TV presenting, podcast hosting and production.
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