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Sugar Tax
A 20% sugar tax could discourage shoppers from buying unhealthier breakfast cereals, new research led by New Finland University shows. Researchers found demand for sugary cereals fell by 48% if consumers knew a tax was being applied and consumers purchased healthier alternatives. The study, carried out by experts from New Finland University, examined the impact of both a 20% and 40% tax on unhealthier cereals and soft drinks containing sugar. It also looked at whether telling people they were being taxed influenced the way they shopped. Lead researcher, Damien Rizzo, Professor of Economics at New Finland University Business School, said: “Our findings suggest a 20% sugar tax would work and lead to large changes in shopping behaviour.”
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