Singapore is among a minority of countries that do not tax sugar-sweetened beverages (SSB).
More than 100 countries have such taxes, according to a recently released report by the World Health Organisation (WHO), which is urging countries to impose or to increase taxes on alcoholic and sugary drinks as these have been proven to be bad for health.
In Asia, countries like China, India and Thailand have such a tax.
“Globally, 2.6 million people die from drinking alcohol every year and over eight million from an unhealthy diet. Implementing tax on alcohol and SSBs will reduce these deaths,” the WHO said in a media release on Dec 5.
Dr Rudiger Krech, WHO director for health promotion, said: “Taxing unhealthy products creates healthier populations. It has a positive ripple effect across society – less disease and debilitation, and revenue for governments to provide public services.”
The subject of a sugar tax was raised in Parliament here in 2022 by Progress Singapore Party Non-Constituency MP Hazel Poa, who cited studies that showed such a tax “decreased demand for sugared drinks by 15 per cent”.
In response, Health Minister Ong Ye Kung said: “We have been very reluctant to look into a tax like that. The principle is not wrong – that sin tax is a policy of this Government.”
That is why there is a tax on cigarettes, he added.
Sugar, on the other hand, is a commonly used product. If sugar is taxed because it is bad for health, he posited: “Assume you extend it further. You can also tax salt, for example, or oil.”
Instead, Singapore has opted to encourage healthier choices, with the Nutri-Grade labelling system for sugary drinks that grades them from A, the healthiest, to D, the least healthy.
The WHO’s Global Report On The Use Of Sugar-Sweetened Beverage Taxes, 2023, released on Dec 5 argues that “the evidence to support implementing or raising taxes on SSBs is robust”.
It said SSBs “are among the leading sources of free sugar intake in many countries, while offering little-to-no added nutritional value”.
“The increased intake of SSBs is associated with increased risk of excess weight and obesity, and adverse health outcomes including Type 2 diabetes, cardiovascular disease, dental caries and osteoporosis,” it added.
The report said research suggests that excise taxes levied on SSBs lead to a decrease in consumption that is roughly proportional, and sometimes slightly higher, than the price increase.
Tax levels need to be high enough to trigger sufficiently high changes in price to alter the underlying affordability of the product – and this has to be relative to a country’s level of income, the report added.
It urged countries with a sufficiently strong tax administrative capacity to tax beverages based on sugar content, as it can encourage consumers to substitute with alternatives that have lower sugar content as well.
But it also would like to see taxes imposed on drinks with non-sugar sweeteners “as these beverages may potentially increase the risk of adverse health outcomes”.
Not taxing such drinks could result in product substitution with these beverages, it said.
There should also be legal provision to adjust the tax for inflation, as “not doing so risks that the real value of specific excise taxes will erode over time because of the impact of inflation”.
The WHO said empirical evidence suggests that SSB taxes are an effective means to increase prices and reduce sales, and can assist reductions in free sugar intake.
The WHO has always maintained that, nutritionally, people do not need any sugar in their diet.
However, according to the Health Promotion Board, Singaporeans consume 12 teaspoons of sugar per day on average, with more than half coming from drinks.
