Sugary drinks tax in Mexico linked with 12 percent cut in sales after one year

http://www.eurekalert.org/pub_releases/2016-01/b-sdt010416.php

Public Release: 6-Jan-2016
Sugary drinks tax in Mexico linked with 12 percent cut in sales after one year
BMJ

In Mexico, a 10% tax on sugar sweetened drinks has been associated with an overall 12% reduction in sales and a 4% increase in purchases of untaxed beverages one year after implementation, finds a study published by The BMJ this week.

The findings have important implications for policy discussions and decisions, say the researchers.

Mexico has some of the highest levels of diabetes, overweight, and obesity in the world, and reducing the consumption of sugar sweetened beverages has been an important target for obesity and diabetes prevention efforts.

From Jan 1. 2014, Mexico implemented an excise tax of 1 peso per litre on sugar sweetened beverages.


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In other words, during 2014 the average urban Mexican purchased 4.2 fewer litres of taxed beverages than expected without the tax.

In contrast, purchases of untaxed beverages were 4% higher than expected without the tax, mainly driven by an increase in purchases of bottled plain water.

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All three socioeconomic groups reduced purchases of taxed beverages, but the reduction was greatest among households of low socioeconomic status, averaging a 9% decline during 2014 and reaching a 17% decrease by December 2014 compared with pretax trends.

The researchers emphasise that this is an observational study so no definitive conclusions can be drawn about cause and effect.They also point to some study weaknesses, such as incomplete data on dairy beverages and their focus on Mexican cities.

Nevertheless, they conclude that this short term change "is moderate but important" and they say continued monitoring is needed "to understand purchases longer term, potential substitutions, and health implications."

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