Smarter taxation can help boost government revenue and health outcomes

The shockwaves of the war in Ukraine hit many countries while they were still reeling from the COVID-19 pandemic. For many developing countries, the fiscal challenges have mounted ever since—the result of surging food, fertilizer andhealth_tax_blog_1140x500_1.png energy prices, rising interest rates, and slowing growth.

In response to the overlapping crises, nearly all countries increased their overall government and health spending. But only a few of them—mostly high-income countries—will be able to sustain these levels in the years ahead. Improving domestic resource mobilization, especially in a way that can sustainably broaden tax bases, will be crucial.

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Is taxing sugar-sweetened beverages a sweet deal?

Blog by Ceren Ozer. Published on http://www.worldbank.org on
Sugar-Sweetened Beverages (SSB)[i] are a well-recognized adversary in the fight against sugary_drink_1140x500.pngobesity and the quest for better public health. Interest in discouraging consumption through higher taxes is growing as more jurisdictions impose them and as we learn more from their experiences. Sugar-sweetened beverage taxes are one of three taxes for health highlighted in a recently published report by the Task Force on Fiscal Policy for Health.
Many are asking: are taxes on sugar-sweetened beverages are really a sweet deal? Does such a tax enable policy makers to improve health outcomes by reducing unhealthy consumption? And does it help generate additional tax revenue for more spending on human capital?

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