TY - JOUR

T1 - In search of an appropriate mix of taxes and subsidies on nutrients and food

T2 - A modelling study of the effectiveness on health-related consumption and mortality

AU - Saha, Sanjib

AU - Nordström, Jonas

AU - Scarborough, Peter

AU - Thunström, Linda

AU - Gerdtham, Ulf G.

N1 - Publisher Copyright: © 2021 The Authors

PY - 2021

Y1 - 2021

N2 - Taxes and subsidies on foods and nutrients have the potential to promote healthier diets and thereby reduce mortality. In this study, we examine the effects of such policy instruments on Swedish public health. Specifically, we estimate the effects of food and nutrient taxes and subsidies on mortality averted and postponed in Sweden, using both demand system estimations and simulation models. We evaluate different Value Added Tax (VAT) reforms. The VAT is raised on food products that are particularly rich in saturated fat or salt and lowered on fruit and vegetables. Our models predict that an increase in the current VAT of 12% on food, to 25% VAT on products rich in saturated fat plus a 0% VAT on fruits and vegetables would result in almost 1100 deaths (95% CI: −832; −1363) averted or postponed in a year in Sweden, while the combination of a 34.4% VAT on products rich in saturated fat and a −10.4% VAT (i.e. a subsidy) on fruits and vegetables would result in almost 2100 (95% CI: −1572; −2311) deaths averted or postponed corresponding to a 4.8% reduction in diet-related annual death. Most of the deaths averted or delayed from this reform would be deaths from coronary heart disease (−1,148, 95% CI: −728; −1586), followed by stroke −641 (95% CI: −408; −887) and diet-related cancer deaths (−288, 95% CI: −11; −435). We find that health-related food taxes and subsidies improve dietary habits as well as reduce the mortality of the Swedish population. However, the effect of these reforms on different socioeconomic classes and which reforms provide the best value for money, i.e., cost-effectiveness of these reforms needs to be established first before implementation.

AB - Taxes and subsidies on foods and nutrients have the potential to promote healthier diets and thereby reduce mortality. In this study, we examine the effects of such policy instruments on Swedish public health. Specifically, we estimate the effects of food and nutrient taxes and subsidies on mortality averted and postponed in Sweden, using both demand system estimations and simulation models. We evaluate different Value Added Tax (VAT) reforms. The VAT is raised on food products that are particularly rich in saturated fat or salt and lowered on fruit and vegetables. Our models predict that an increase in the current VAT of 12% on food, to 25% VAT on products rich in saturated fat plus a 0% VAT on fruits and vegetables would result in almost 1100 deaths (95% CI: −832; −1363) averted or postponed in a year in Sweden, while the combination of a 34.4% VAT on products rich in saturated fat and a −10.4% VAT (i.e. a subsidy) on fruits and vegetables would result in almost 2100 (95% CI: −1572; −2311) deaths averted or postponed corresponding to a 4.8% reduction in diet-related annual death. Most of the deaths averted or delayed from this reform would be deaths from coronary heart disease (−1,148, 95% CI: −728; −1586), followed by stroke −641 (95% CI: −408; −887) and diet-related cancer deaths (−288, 95% CI: −11; −435). We find that health-related food taxes and subsidies improve dietary habits as well as reduce the mortality of the Swedish population. However, the effect of these reforms on different socioeconomic classes and which reforms provide the best value for money, i.e., cost-effectiveness of these reforms needs to be established first before implementation.

KW - Food intake

KW - Food taxes

KW - Nutrients

KW - Simulation model

KW - Subsidies

KW - Value added tax

U2 - 10.1016/j.socscimed.2021.114388

DO - 10.1016/j.socscimed.2021.114388

M3 - Journal article

C2 - 34520938

AN - SCOPUS:85114753200

VL - 287

JO - Social Science & Medicine

JF - Social Science & Medicine

SN - 0277-9536

M1 - 114388

ER -