Should We Tax Sugar and If so How?

22 Pages Posted: 6 Mar 2019

See all articles by Peter Lloyd

Peter Lloyd

University of Melbourne - Department of Economics

Donald MacLaren

University of Melbourne - Department of Economics

Date Written: March 2019

Abstract

This article reviews empirical studies of proposals to tax sugary products in Australia. A corrective tax must be designed carefully if it is to increase national welfare. There is an underlying problem in designing such a tax because consumers are heterogeneous. The best choice of goods to be taxed is the group of sugar‐sweetened‐beverages, the best tax base is the sugar content and the best tax form is a progressive specific tax with two or more levels. We recommend initial rates that are equal to those of the UK tax on SSBs.

Suggested Citation

Lloyd, Peter John and MacLaren, Donald, Should We Tax Sugar and If so How? (March 2019). Australian Economic Review, Vol. 52, Issue 1, pp. 19-40, 2019. Available at SSRN: https://ssrn.com/abstract=3345264 or http://dx.doi.org/10.1111/1467-8462.12299

Peter John Lloyd

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

HOME PAGE: http://melbecon.unimelb.edu.au/staffprofile/plloyd/home.html

Donald MacLaren (Contact Author)

University of Melbourne - Department of Economics ( email )

Victoria 3010, 3010
Australia
(61) 3 8344-5035 (Phone)
(61) 3 8344-6899 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
1
Abstract Views
53
PlumX Metrics