Bermuda has launched an eight-week public consultation on the proposed introduction of a wide-ranging tax on sugar.
The suggested levy goes further than other similar taxes introduced around the world and would affect sugar, candies and other beverages with added sugar.
A Bermuda Ministry of Health survey has found that 75% of the territory’s residents are overweight and more than a third of adults are obese. The ministry said the prevalence of obesity and diabetes is one of the highest among OECD countries.
The consultation period, lasting until 1 March, is expected to yield feedback to be considered as part of a sugar tax model for Bermuda, with an expected implementation date later in 2018.
The Bermuda government has studied similar taxes from other countries and is being guided by the World Health Organisation, the Pan American Health Organization and other international bodies with respect to benefits derived from a sugar tax.
A consultation paper on the tax showed that the levy is designed to help people be healthier and discourage importers from bringing in high-sugar products.
The document said: “The goal is not to impose a tax that unfairly targets low-income families, but will encourage better choices at the checkout counter and encourage healthier imports from the wholesalers.”
The proposed policy also seeks to reduce the customs duty on the importation of water. Currently the duty rate is 15%; a reduction to 0% duty on water may be passed on to the consumer to encourage the drinking of water rather than sugary drinks.
Earlier this week, a spokesman from the Australian government announced the country won’t support the introduction of a tax on sugary soft drinks.
Despite calls from the Australian Medical Association to tax the beverages “as a matter of priority” due to high levels of obesity, he said that that government “doesn’t believe increasing the family grocery bill at the supermarket is the answer”.
The UK, Ireland, the Philippines, South Africa and Estonia are due to implement sugar taxes this year.
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