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Impact of a Tax on Sweetened Beverages in the Philippines: an ECEA

2019

This study used extended cost-effectiveness analyses to estimate the effect of the sweetened beverages tax in the Philippines on the numbers of premature deaths averted attributed to type 2 diabetes mellitus, ischemic heart disease and stroke, across income quintiles over the period 2018-2037. The study also estimated the financial benefits of the tax from reductions in out-of-pocket payments, direct medical costs averted, and government health-care cost savings.

The analysis showed that the tax could avert an estimated 5,913 deaths related to diabetes, 10,339 deaths from ischemic heart disease, and 7,950 deaths from stroke over 20 years. The largest number of deaths averted would be among the fourth- and fifth-income quintiles. The tax could generate total health-care savings of US$627 million dollars over 20 years and raise US$813 million in revenue per year. The poorest quintile could bear the smallest tax burden increase (14% of the additional tax) and have the lowest savings in out-of-pocket payments due to relatively large health-care subsidies. Finally, an estimated 13,890 cases of catastrophic expenditure could be averted.

 

Source:

Saxena A, Koon AD, Lagrada-Rombaua L et al. Modelling the Impact of a Tax on Sweetened Beverages in the Philippines: An Extended Cost–Effectiveness Analysis. Bulletin of the World Health Organization 2019; 97: 97-107. http://dx.doi.org/10.2471/BLT.18.219980