WHO wants to impose a 20% tax on sugary drinks

Without effective interventions, it is estimated that by 2030, nearly 2 million children aged 5-19 will be overweight or obese.

Speaking at a workshop on providing comments on the Special Consumption Tax Law on applying special consumption tax to sugary drinks; preventing overweight and obesity in children on November 24, in Hanoi, Ms. Do Hong Phuong, nutrition expert of the United Nations Children's Fund (UNICEF), especially emphasized that the situation of overweight and obesity in children in Vietnam is increasing.

Most opinions at the workshop agreed with the need to impose special consumption tax on sugary drinks.

In the group of children aged 5-19, the rate of overweight and obesity increased from 8.5% (2010) to 19% (2020), of which 26.8% was in urban areas. This figure is higher than the average rate of the Southeast Asian region (17.3%).

"Without effective and timely interventions, it is estimated that by 2030, nearly 2 million children aged 5-19 will be overweight or obese," said Ms. Phuong.

The causes of the increase in overweight and obesity rates are similar across countries, including high consumption of sugary drinks; low consumption of vegetables, tubers and fruits; and lack of exercise.

According to Ms. Truong Thi Tuyet Mai, Deputy Director of the National Institute of Nutrition, children aged 2-5 who regularly drink soft drinks have a 43% increased risk of obesity. Childhood obesity is a global problem that requires urgent action.

"We regularly warn about the overweight and obesity situation in Vietnam. The rate of overweight and obese children and adolescents has doubled in 10 years and tripled in urban areas and large cities. Looking at the epidemiological chart of obesity in children and adolescents, we call this an epidemic that needs to be urgently addressed," Ms. Mai emphasized.

10% sugary drinks tax not strong enough

According to Mr. Nguyen Huy Quang (Vietnam Medical Association), former Director of the Legal Department (Ministry of Health): sugary drinks are not only one of the causes of overweight and obesity but also the cause of many other diseases.

The trend of using sugary drinks in Vietnam is increasing, surpassing many countries such as Thailand and Indonesia.

Currently, there are 104 countries in the world that impose excise tax on sugary drinks nationwide; 3 countries impose tax in some states and localities. ASEAN has 6 countries that impose excise tax on sugary drinks.

Fully supporting the special consumption tax on sugary drinks, Mr. Quang also expressed concern about the 10% tax rate. "There are opinions that it is necessary to increase it further to ensure product price increases and change behavior, while a 10% tax rate does not have much impact," Mr. Quang said.

According to Dr. Nguyen Tuan Lam, an expert from the World Health Organization (WHO), soft drink consumption in Vietnam has increased rapidly over the past 15 years. The rates of overweight, obesity and type 2 diabetes are also increasing rapidly in Vietnam.

Excise taxes are an effective way to reduce the consumption of soft drinks. Now is the right time to impose a tax on sugary drinks.

"A tax of 10% of the manufacturer's selling price, applied for 1 year, is very small and has little impact. Vietnam should consider applying an annual tax increase roadmap to tax sugary drinks at 40% of the manufacturer's selling price (ie 20% of the retail price as recommended by WHO) by 2030 to protect the health of future generations.

At the same time, Vietnam should create a favorable environment to reduce the consumption of sugary drinks such as front labeling, banning advertising...", Mr. Lam said.

Ms. Bui Thi Quynh Tho, a member of the National Assembly's Economic Committee, said: "Imposing a special consumption tax on sugary drinks at 10% as proposed is acceptable. Taxing them to limit the amount is good."

However, because analysis shows that sugary drinks are not the only cause of overweight and obesity, Ms. Tho suggested that the law drafting agency and the Government consider further to come up with a more comprehensive solution.

"For example, industrial foods, fast foods, etc. are also foods that need to be studied to be taxed at a high level. Taxing sugary drinks alone is not enough to prevent overweight and obesity," said Ms. Tho.

Source: https://thanhnien.vn/who-muon-ap-thue-20-voi-do-uong-co-duong-185241124145059035.htm