How to Apply Excise Taxes to Fight Obesity
IMF How To Notes, December 10, 2021
Source details
- Canonical URL
- How to Apply Excise Taxes to Fight Obesity
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Bibliographic details
- Authors: Patrick Petit, Mario Mansour, Philippe Wingender
- Published: December 10, 2021
- Series: IMF How To Notes
- DOI: https://doi.org/10.5089/9781513585697.061
Overview / Purpose
- Authors: Patrick Petit, Mario Mansour, Philippe Wingender
- Publication date: December 10, 2021
- Objective: Summarizes the ongoing debate and practice on food excises and their potential role as a policy tool to fight the obesity epidemic, to assist policymakers in deciding whether to adopt excise taxes on unhealthy foods and, if so, how to design them.
- Context: Notes challenges distinct from tobacco control due to the diversity of natural and processed foods, complexity of food supply chains, and the difficulty of targeting excessive caloric consumption rather than overall consumption.
Key questions addressed
- Should excises on unhealthy food be used to fight obesity?
- If so, under what conditions should they be used?
- What product and market characteristics help identify relevant tax bases and appropriate tax rates?
- How can policymakers design excise taxes on food given evolving scientific evidence?
Findings and considerations
- Fighting obesity is a difficult policy challenge because:
- Diversity of natural and processed foods complicates targeting.
- Food supply chains are complex.
- Targeting excessive caloric consumption is more complicated than reducing overall consumption (unlike tobacco control).
- The experience from tobacco control has stimulated interest in excise taxes for food, but transferability is limited by differences in products and consumption patterns.
- The scientific evidence on food excises and their health impacts is evolving; policymaking should acknowledge this uncertainty.
- The note aims to summarize debates and policy practice to inform capacity development work for policymakers considering food excises.
Policy design issues highlighted
- Conditions under which food excises may be appropriate.
- Identification of suitable tax bases (product and market characteristics).
- Determination of tax rates that align with public health objectives while considering market realities.
- Consideration of evolving scientific evidence when choosing design and implementation.
Content in this bundle
- How to Apply Excise Taxes to Fight Obesity; IMF How to Notes 12/08; December 10, 2021