Tax on sweet drinks

The Verkhovna Rada has already registered a draft law on the introduction of a tax on sweet and carbonated drinks. It provides for the taxation of such drinks in the amount of 0.1 euro (4 hryvnias) per 1 liter.

The introduction of the new tax is justified by concern for the health of Ukrainians. The Ministry of Health believes that by increasing the price of drinks, it is possible to motivate Ukrainians to consume less of them.

At the same time, the experience of countries that have introduced such a tax shows that it did not work as officials thought. For example, in Great Britain the obesity rate is much higher than in Ukraine (28% versus 20%), even though sugary drinks are taxed there.

The fact is that obesity and other problems related to overeating are complex and cannot be solved simply by raising taxes on one product. But, of course, it is much easier for officials to raise taxes than to implement systemic changes in the areas of health care and education.

As they say, if you have a hammer, you tend to see every problem as a nail.