DC Resource Centre
Obesity – a taxing problem?
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Resource Information
- Name of Resource
- Obesity – a taxing problem?
- Year Created
- 2006
- Description
- Toronto, ON. Taxing so called “junk” food to help curb the rise in obesity is receiving increasing interest and consideration, according to Dietitians of Canada. Since the expanding waistline of Canadians is a serious health problem showing no signs of abating, innovative solutions are being sought to reverse this trend. One proposal is to apply a consumption tax on less healthy foods, similar to the strategy for reducing tobacco usage. Can a consumption tax help to change Canadian’s intake of excess energy, fat and sugar? Dietitians of Canada (DC) has reviewed the evidence on this complex matter and cautions that it is premature to endorse taxation as a solution to our obesity problem.
One of the factors that makes this a more complex issue than tobacco is that the tax would not be applied to all foods – only those seen as being less desirable choices. “Since there is no clear definition for “junk” foods, what exactly should be taxed?” queries Dr Paul Fieldhouse, author of a recent professional practice article on this issue prepared for Dietitians of Canada. “The types of foods proposed to be targeted by this form of taxation are foods high in fat, sugar, snack foods, fast foods, soft drinks and candy. However, it is difficult to link individual foods to specific health impacts. There would have to be broad agreement on the part of policy makers, practitioners and industry on what constitutes “junk-food” or “snack food” and therefore would be taxable,” continues Fieldhouse.
A second challenge recognizes the complexity of administering a differential retail tax. Given that new products are constantly appearing on the market, and that manufacturers may change product specifications, a continual monitoring, evaluation and classification system would be required. Retailers would need to adopt new technologies and/or accounting systems to charge the tax, and tax remittance and collection systems would have to be developed. Restaurants would be faced with an even more complex task. It may be that tax levies at the manufacturer or distributor level would be somewhat easier to administer and would underline the idea that healthier choices are an industry as well as consumer responsibility. In either case, both producers and consumers would likely bear a share of the costs.
A third and equally important issue in this debate, is whether or not a consumption tax would actually have the desired impact of changing eating habits and curbing obesity. Evidence supporting these outcomes is difficult to find since “junk” food tax strategies have rarely been tried. Dr. Fieldhouse noted, “Given this lack of data to draw on, researchers have consequently used economic models to determine what impact the tax might have on eating habits; the results are conflicting.” Research from the United States Department of Agriculture (USDA) concluded that a small tax would not change eating patterns or diet quality. Conversely, a Danish Food and Resource Economics Institute found that taxing food based on fat or sugar content could positively change the eating habits of some groups but not those for whom obesity and unhealthy diets are of the most concern.
There are some examples in specific and more “controlled” settings, where cost incentives for healthier foods and limiting the availability of less desirable products have been shown to improve food choices. Schools and workplaces are cases in point where all stakeholders have worked together in implementing these kinds of health promoting policies. In these environments it is easier to monitor results and to assess their impact on food choices – whether they will reduce the incidence of obesity remains to be seen.
Dietitians of Canada advises that the usefulness of economic policies such as food taxes and their influence on eating behaviors is poorly understood and requires more research. Says Lynda Corby, Director Policy Communications with DC, “For now, a “junk” food tax can at best be considered a potential strategy among many alternatives to help stem the rise of obesity, but one that needs further study to demonstrate its effectiveness.” While solutions to our obesity problem continue to be examined, DC encourages Canadians to use the mandatory nutrition labelling information on packaged food products to help guide their food choices. Learn more about nutrition labelling by visiting the Virtual Grocery Store at www.healthyeatingisinstore.ca.
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Dietitians of Canada represents over 5,400 dietitians across Canada. DC is committed to promoting the health and well-being of consumers through food and nutrition. For further information on nutrition and healthy eating, visit Dietitians of Canada award-winning website at www.dietitians.ca. Register to received regular healthy eating messages from dietitians – food and nutrition information you can trust.
Contacts for further information:
Helene Charlebois - Ottawa PH (613) 232-6798
Anar Jamal - Calgary PH: (403) 943- 3114
Gina Sunderland - Winnipeg PH: (204)452- 3070
Laurie Wadsworth - Antigonish – PH: (902) 867-2190
Carol Morgan -Toronto – PH: (519) 679-2661 ext 250
Delone Abercrombie – Trois Rivières PH: (819)-375-9698
