Soft drink tax would hit young hardest

Teens and young adults will be most affected by a tax on sugary drinks proposed by the Grattan Institute in an effort to tackle obesity. The tax would raise approximately $500 million per year by introducing a levy of 40c per 100 grams of sugar in drinks lacking nutritional value. Such a tax would exclude fruit juice and flavoured milk as well as artificially-sweetened beverages. Dr Stephen Duckett from the Grattan Institute said the new report seeks to highlight the cost of obesity to the community. "What we’re trying to do is ensure that people who are making choices about consuming sugar-sweetened beverages are aware of the costs, so that we ensure the producers and consumers are paying the full costs and taxpayers aren't out of pocket,” he said. The cost of obesity to the community is estimated to be $8.6 billion per year, in healthcare, welfare and foregone tax revenue as a result of the inability for obese Australians to earn to their potential.

Researchers say consumption of sugary drinks has dropped in a Californian town due to a sugar tax. (AAP) Source: AP