Suzanne Soares-Wynter | Sweetened drinks tax: big gains and smaller sips

The recent decision of a Special Consumption Tax (SCT) on non-alcoholic sweetened beverages (SSBs) is a pivotal moment in Jamaica’s public health history. SSB consumption is an established risk factor contributing to Jamaica’s high prevalence of obesity and non-communicable diseases (NCD) such as type 2 diabetes, heart disease, tooth decay, and certain types of cancer. A beverage tax creates a dual-purpose opportunity to disincentivize and reduce the consumption of unhealthy products, while simultaneously generating government revenue.

Evidence from the WHO and multiple research studies indicates that SSB taxes show real-world reductions in consumption. A 20 per cent increase in price due to taxes can lead to a corresponding reduction in consumption of around 20 per cent, effectively reducing obesity and diabetes rates. Health taxes such as the SCT therefore rank among the most efficient public health tools delivering high returns per dollar spent.

Jamaicans are among the largest consumers of SSBs globally. SSBs act like sugars in liquid form, they are easy to consume in large amounts, are absorbed quickly, and supply ‘empty’ calories with little nutritional value. The high amount of sugar in many beverages available locally is inconceivable. It is therefore unsurprising that national surveys confirm that consuming just one SSB per day poses significant health risks for Jamaicans. Interventions aimed at reducing SSB consumption are therefore necessary.

Oppositions to the SCT in the Government’s 2026/2027 Budget are expected. Opinions are that the SCT is a tax on the very poor, it should tax all sugar not just drinks, it does not reduce consumption, and it is inelastic.

DRINKING SWEET AT A COST?

First, the arguments that low-income families will be most affected and unlikely to change behaviours are illusive. About 65 per cent of Jamaicans face food insecurity, unsure of their next meal. Low-income families are obviously challenged to prioritise health and are likely to fail at securing basic nutritional needs. If anything, these arguments expose the systemic vulnerabilities of our economy. Unhealthy SSB and ultra-processed products should never be upheld as a required, acceptable, or sustainable option.

The SCT will increase the price of SSBs making it costlier to entertain this unhealthy vice. But we must not discount the disparities and other negative impacts these products have on vulnerable groups. Studies show that low-income families are more price-sensitive and more likely to reduce consumption over time in response to a tax. A 2022 meta-analysis of 62 studies showed a 15 per cent reduction in SSB sales. When taxes are substantial (such as the proposed $12+ increase per 600ml bottle), they function as a “nudge” towards healthier, untaxed alternatives.

We cannot continue to prioritise profits over public health goals. The long-term expenses associated with diabetes and cardiovascular diseases were projected to cost the Jamaican economy over $77.1 billion between 2017 and 2032. The estimated revenue to be generated from the SCT ($10.1 billion projected in 2026) is a small step to mobilise the funds to improve the public health system. In this current post-crisis (Hurricane Melissa) and recovery mode, this approach will certainly benefit all Jamaica, and especially low-income families who carry higher burdens and rely on government health services.

PROLIFERATION OF UNHEALTHY FOODS

The wait for industry to voluntarily reformulate and provide healthier food and beverage options is longstanding and futile. Data show that domestic production of carbonated beverages in Jamaica rose from 17.3 million cases in 2020 to 20.1 million in 2024. A study describing the quality of pre-packaged products available in Jamaica, showed that beverages, and specifically SSB, make up the largest share of products available to consumers within retail spaces. Most food and beverage products contained sugars, salts, and unhealthy fats above recommended thresholds. This proliferation of unhealthy SSB and other ultra-processed products promotes sustained consumption, exacerbates health risks, and widens disparities in access to nourishing food. Strong fiscal interventions such as the SCT are entirely warranted.

The proposed per-millilitre tax structure ($0.02/ml) provides a clear incentive for manufacturers to reformulate products with less sugar. The SCT applies to both locally produced and imported drinks, ensuring parity and that all affected products — whether high or low sugar — are treated uniformly at the point of manufacture or import rather than being unfairly targeted. Surely, there are other public health concerns requiring attention. Already, efforts are under way to remove trans fats, and public education of the harmful effects of added salt and alcohol remain on front burners. This SCT focus on SSBs is yet another unique target at an unhealthy product and a progressive step for impactful, evidence-based policy.

Unlike most taxes, the SCT is receiving strong support by most Jamaicans. A 2022 study reported that Jamaicans were overwhelmingly supportive of government actions to address consumption, including a tax on sugary beverages. Jamaican’s increased awareness of the harms of sugary drinks was a major success of the Heart Foundation of Jamaica’s (HFJ) mass media campaign. The SCT is therefore a progressive move in support of consumers who choose health. More details of this peer-reviewed research paper titled, ‘ How the “Are we drinking ourselves sick?” Communications Campaign Built Support for Policy Action on Sugary Drinks in Jamaica’ can be accessed at

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9318558/

SSB taxes rank among the most efficient fiscal policies that deliver broader economic, social and health advantages. Our nation’s health hangs in balance and the Special Consumption Tax on non-alcoholic sweetened beverages is a bold action that will challenge corporate interests and entrenched dietary habits. However, it is a win-win intervention designed to create a shift in consumption patterns and curb healthcare expenditures. Saving lives is crucial to safeguarding financial stability, social progress, and sustainable development.

Suzanne Soares-Wynter, PhD is clinical nutritionist, Caribbean Institute for Health Research and board director at Heart Foundation of Jamaica. Send feedback to columns@gleanerjm.com