Evidence from countries including Mexico and Hungary, have shown that when governments have taken action to introduce taxes on unhealthy foods and sugar sweetened beverages (SSBs), it does result in a reduction in their purchase and consumption. 

Public Health Wales researchers have compiled an international horizon scanning report, Fiscal Levers to Address Obesity, to examine financial policies such as price increases and subsidies on specific food groups and the extent to which these policies promote healthier diets. 

Price increases on unhealthy foods have increased around the world in recent years, with 115 countries implementing a ‘sugar tax’ on SSBs, and 41 countries introducing food taxes on a national level. 

This follows World Health Organization (WHO) guidelines published earlier this year which made recommendations that SSBs and unhealthy foods should be taxed, citing evidence of the desirable effect that increased prices made on purchasing behaviour, as well as the low costs of implementation and its feasibility. 

There is growing evidence that combining taxes on unhealthier foods with subsidies or reduced sales taxes on healthier options may be an effective approach. The report says that the way that the taxes are designed and introduced is important, to ensure that the implementation is effective and sustainable.