Category: Economic policy

According to UNICEF, a 20% tax on sugar-sweetened beverages (SSBs) has been demonstrated to reduce the prevalence of overweight by 1–3% and the prevalence of obesity by 1–4%. These findings highlight the significant and multifaceted effects or consequences to the implementation of a sweetened beverage tax, which extend across public health, consumer behavior, and economic factors.

Studies reveal that introducing a tax equivalent to a 10% increase on sugar-sweetened beverages (SSBs) has consistently led to an average decline in SSB purchases and dietary intake of 10.0%, according to a systematic review. This evidence demonstrates the effectiveness of such fiscal policies in influencing consumer behavior.

In July 2025, Pakistan’s Minister for Food Security announced a major shift toward deregulating the sugar industry, signaling a decisive new sugar policy to address chronic market volatility. This move followed months of consumer frustration over surging prices and intense scrutiny from oversight bodies like the Competition Commission of Pakistan (CCP).

In 2022, one in eight people globally were living with obesity, a figure that has more than doubled since 1990. This startling statistic has prompted a major question for policymakers: would taxes on unhealthy foods reduce obesity? This article examines the potential and pitfalls of this controversial public health strategy, reviewing evidence from around the world.