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Taxing unhealthy food will help reduce obesity, says global study | Imperial news

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Mexico is leading the way in introducing taxes on unhealthy food options, successfully helping to tackle obesity and related health problems.

Taxes on foods high in fat, salt or sugar (HFSS) reduce the sale, purchase and consumption of those foods, according to a new peer-reviewed analysis of evidence from around the world from Imperial College Business School.

This can lead to lower rates of obesity and other diet-related health problems, especially when taxes are combined with subsidies for healthier foods. The review also notes that higher tax rates are likely to reduce HFSS food consumption and obesity, and that the response is most pronounced among lower income groups.

Global findings

The review examines findings from twenty studies worldwide, in countries including Mexico, the United States, Canada, Hungary, Denmark, the Netherlands, Singapore and New Zealand, highlighting the global potential of taxes on HFSS foods. To date, only 16 countries have introduced taxes on HFSS foods, and the review includes several of these, as well as experimental studies.

In Mexico, an 8% tax on non-essential, energy-dense foods, including candy, chocolate, sugary cereals, chips and salty snacks, reduced sales of taxed foods by 18% at supermarkets and up to 40% at other retailers . Low-income groups, who were previously larger consumers of the taxed food, showed the largest declines in consumption once the tax was introduced.

Findings from North America and New Zealand also suggest that a low-rate tax or a tax without subsidies for healthier foods introduced in parallel could be effective alone in increasing government revenues. To really impact consumption levels and obesity, the authors found that high tax rates and subsidies for healthier foods – such as foods with no added sugar or salt, foods low in saturated fat, whole grain foods and fruit and vegetable-based options – were key.

“Our research is a crucial step toward helping countries create health policies that can significantly reduce the burden of disease and improve the quality of people’s health.” Dr. Elisha Pineda Imperial College Research Fellow at the George Institute for Global Health UK

One of the findings of the publication is that revenues from a high tax (between 20% and 50%) on HFSS foods could be used to finance subsidies for healthier alternatives. For low- and middle-income countries, where a price difference between healthy and unhealthy foods is a major driver of obesity rates, this could be a crucial step in helping retailers of healthier options compete with heavily promoted HFSS foods.

Lessons for British policy

The study’s findings are particularly relevant to Britain, where obesity is a growing problem. The number of overweight or obese adults in England has risen from 53% in 1993 to 64% in 2021. Global rankings place Britain 55th for male obesity and 87th for female obesity, and the issue costs the NHS around £6.5 billion a year.

Recent government measures include mandatory calorie labeling in restaurants and takeaways, and restrictions on where HFSS food can be placed in supermarkets. There is also a sugar tax on soft drinks, which has reduced the average sugar content of affected products by 46% between 2015 and 2020.

However, based on the findings in this analysis, it may make sense to expand it to a tax on all HFSS foods, the researchers say.

Dr. Elisa Pineda, Imperial College Research Fellow at The George Institute for Global Health UK, lead author of the publication, said: “For governments, especially in Britain, our findings underline the effectiveness of HFSS food taxes as a viable strategy to reduce unhealthy food Reduce. consumption and addressing the public health challenges of obesity.”

“The evidence that people in lower income groups benefit most from these taxes suggests that they can also play a role in reducing health inequalities,” says Dr. Pineda.

“The positive outcomes associated with combining HFSS food taxes with subsidies for healthier options make it an attractive policy option for governments looking to encourage healthy eating and reduce the impact of obesity. However, to be most effective and prevent consumers from simply substituting other unhealthy options, it is important that these taxes are accompanied by greater availability of healthy, affordable alternatives,” she said.

According to Dr. Pineda, the research was driven by the urgent need to address the growing number of diet-related diseases. “Recognizing the impact that food choices have on people’s health, we were motivated to identify and evaluate policies that could help countries turn the tide of obesity.” Dr. Pineda explained.

She continued: “Our research is a crucial step toward helping countries create health policies that can significantly reduce the burden of disease and improve the quality of people’s health. Our findings highlight the potential of targeted fiscal measures, such as food taxes and subsidies, to change consumer behavior in ways that could lead to healthier populations on a global scale.”

The review was written by Dr. Elisa Pineda together with Dr. Mathilde Gressier, Dr. Danying Li, Dr. Todd Brown, Dr. Sarah Mounsey, Dr. Jack Olney and Professor Franco Sassi from the Center for Health Economics and Policy Innovation at the Imperial College Business School and published in the journal Food Policy.