Soda taxes get proposed often, and they have varying levels of success depending on how they are implemented. A new study reveals that when people are made aware that the sugar tax impacts the price of products they stop buying the unhealthy product. If you educate people then they act on that knowledge. One way to remind people about the health impact of consumer food products is on their bill.
But the share of sugary drinks purchased did decline slightly (45%) when the tags mentioned the price included the added tax.
Results showed that most consumers who chose to avoid sugary drinks with the added tax chose a drink that was not subject to the tax.
“Consumers are averse to taxes, so when they learn that their favorite drink has this sugary beverage tax, some are less interested in buying it,” Donnelly said.