Which countries have a junk food tax?

January 11, 2026 •

4 min read

As of 2024, more than 100 jurisdictions worldwide have implemented taxes targeting unhealthy foods and beverages, often referred to as a junk food tax or sugar tax. These fiscal policies are a growing global trend aimed at improving public health by discouraging the consumption of products high in sugar, fat, and salt.

Quick Summary

Several countries and jurisdictions globally have enacted taxes on unhealthy products, such as sugary drinks and high-fat snacks, to address public health concerns like obesity. Notable examples include Mexico, the United Kingdom, Hungary, and Chile, which have implemented various forms of these taxes with differing approaches and results.

Key Points

Mexico's SSB Tax: Mexico implemented a 10% tax on sugary drinks in 2014, leading to a significant and sustained reduction in purchases, particularly among lower-income groups.
UK Soft Drinks Levy: The United Kingdom's tiered sugar tax, introduced in 2018, incentivized manufacturers to reformulate products, resulting in a substantial reduction of sugar content across soft drinks.
Hungary's Broader Tax: Hungary’s Public Health Product Tax, established in 2011, is one of the more comprehensive policies, targeting a wider range of foods and drinks high in sugar, salt, and caffeine.
Chilean Tiered Approach: Chile's tax on sugary beverages varies based on sugar content, applying a higher rate to drinks with more than 6.25g of sugar per 100ml.
Impact on Health and Industry: These taxes have been shown to influence consumer behavior and drive product reformulation, though concerns about economic impact and consumer substitution persist.

Global Overview of Junk Food and Sugar Taxes

A junk food tax, more formally known as a public health product tax or sugar-sweetened beverage (SSB) tax, is a fiscal measure implemented by governments to influence dietary habits. The primary goal is to reduce consumption of unhealthy products, thereby addressing non-communicable diseases (NCDs) like obesity and diabetes. These taxes can take several forms, targeting different ingredients or product categories.

Countries in the Americas with Junk Food Taxes

The Americas have seen significant activity regarding these health-focused taxes, with several nations leading the charge to combat high rates of obesity and NCDs.

Mexico: One of the most well-known cases, Mexico implemented a 10% excise tax on sugar-sweetened beverages in 2014. There is also an 8% tax on high-energy-dense, non-essential foods. Research has indicated a sustained reduction in the purchases of these taxed products, especially among lower-income households. Mexico's efforts have influenced other countries to adopt similar measures.
Chile: Since 2014, Chile has used a tiered tax system on non-alcoholic beverages. Drinks with a higher sugar content (at least 6.25g per 100ml) face a higher tax rate of 18%, while those below that threshold are taxed at 10%.
Colombia: A significant reform was passed in December 2022, introducing taxes on both ultra-processed food products and sugary drinks. The tax rates depend on the product's sugar, sodium, and saturated fat content and will increase in phases over several years.
Barbados: In March 2025, Barbados announced a new 20% excise tax on salty snacks, following previous taxes on sweetened beverages.

European Countries with Public Health Product Taxes

European nations have also experimented with various forms of junk food taxation, with differing levels of success and scope.

United Kingdom: The Soft Drinks Industry Levy (SDIL) was introduced in 2018 and has been highly effective. It is a tiered tax based on sugar content, pushing manufacturers to reformulate their products. Drinks with 8g+ of sugar per 100ml face the highest charge, while those with 5-8g per 100ml are taxed at a lower rate. Drinks below 5g per 100ml are not taxed, leading to a substantial drop in overall sugar content in soft drinks.
Hungary: This country has a broad-based Public Health Product Tax (PHPT), nicknamed the "chips tax," which was introduced in 2011. It applies levies to a wide array of pre-packaged foods and drinks high in sugar, salt, or caffeine, including energy drinks, salty snacks, and confectionery. The tax has reportedly led to product reformulation by manufacturers and a reduction in consumption by some consumers.
Finland: As one of the earliest adopters, Finland introduced taxes on soft drinks back in 2001, though primarily for revenue purposes.
France: France began taxing sugary drinks in 2012, later refining its approach to a tiered system in 2018 based on sugar content.

Pacific and Other Regions

Pacific Island nations were among the pioneers of health-related food taxes due to high rates of NCDs, often using import tariffs.

Fiji: This nation employs a tiered system of excise taxes on local sweetened beverages and also imposes import duties on imported sugary drinks.
South Africa: Implemented a Health Promotion Levy (HPL) on sugary drinks in 2018, which has seen some success in decreasing sugary beverage consumption.
Philippines: Uses excise taxes on sugary and artificially sweetened drinks.

How junk food tax policies work in practice

There are two primary approaches to taxing junk food: excise taxes and value-added taxes (VAT). Excise taxes are specifically levied on particular products, such as sugary drinks, and are a fixed amount per unit (e.g., per liter or kilogram). A VAT or sales tax approach involves applying a higher percentage rate to certain unhealthy food categories. Most successful junk food taxes use an excise tax structure, often tiered based on unhealthy content.


Country/Jurisdiction	Tax Type	Product Focus	Mechanism	Observed Impact
Mexico	Excise	Sugary drinks & high-calorie snacks	Tax on volume (drinks) or energy density (foods)	Reduced sales, especially among low-income consumers
United Kingdom	Excise (SDIL)	Soft drinks with added sugar	Tiered tax based on sugar content (g/100ml)	Significant product reformulation, reduced sugar consumption
Hungary	Public Health Product Tax	Wide range of sugary/salty/caffeinated products	Excise tax based on weight or volume	Product reformulation, reduced consumption (especially initially)
Chile	Excise	Non-alcoholic beverages	Tiered tax based on sugar content (g/100ml)	Increased prices for high-sugar drinks
South Africa	Health Promotion Levy	Sugary drinks	Tax based on sugar content	Decreased consumption of taxed beverages

Effectiveness and Challenges

While evidence suggests these taxes can decrease consumption of targeted products and encourage reformulation, long-term effectiveness varies. Challenges include potential economic impacts, debates over regressivity (higher burden on low-income households), and consumer substitution of taxed products with untaxed alternatives. Success is often tied to comprehensive public health strategies that include education and support for healthier options.

Conclusion

The implementation of a junk food tax is a global and growing strategy aimed at improving public health. From pioneering initiatives in Mexico and Hungary to the highly successful tiered sugar tax in the United Kingdom, countries are using fiscal policy to address diet-related diseases. While results show promising shifts in consumer behavior and industry practices, debates over effectiveness and potential drawbacks continue. As more countries consider or refine such policies, the long-term impact on global health and the economy remains a key area of study and public interest. Global Food Research Program provides useful tracking on these policies.

Frequently Asked Questions

A junk food tax is a fiscal policy that applies a levy on certain foods and beverages deemed unhealthy, typically those high in sugar, salt, or fat. The tax is intended to increase the price of these items to discourage consumption and combat diet-related health issues.

Yes, research indicates that the UK's Soft Drinks Industry Levy (SDIL) has been effective. It prompted manufacturers to significantly reduce the sugar content of soft drinks and contributed to a reduction in sugar consumption among both adults and children.

Denmark is a well-known example of a country that repealed a junk food tax. Introduced in 2011, the tax targeted foods with high saturated fat content but was scrapped just over a year later due to concerns over higher food prices and potential job losses.

No, Mexico's tax initiative includes both a tax on sugary drinks and an 8% tax on high-energy-dense, non-essential foods. This broader approach targets both unhealthy beverages and certain snack foods.

Junk food taxes vary significantly. Some countries, like the UK, use a tiered system based on sugar content. Others, like Hungary, apply a broader tax to a wider category of unhealthy products. The specific products targeted and the tax rates differ based on a country's public health goals and policies.

Not necessarily. While many countries, like Mexico, aim to allocate revenue from these taxes to health-related initiatives, the actual use of the funds can vary. Transparency in revenue allocation is an ongoing challenge in many regions.

Critics of junk food taxes argue they disproportionately affect low-income households, are an ineffective tool for long-term behavior change (as consumers may switch to untaxed alternatives), and can potentially harm local industries and jobs.