Sugar is a common nutrient is foods. It is always in form of glucose. The human body needs the sugar for its cells to survive otherwise the cells would die. However according to health, scientist, more sugar on the body can lead to diseases. The diseases can be obesity, type 2 diabetes, heart diseases and dental decay. Most of the foods and drinks produced today have high sugar concentration. The normal sugar consumption per day for a female should 9 while a male should have 6 teaspoons. Although these foods and drinks have higher sugar concentrations, it doesn’t mean that a tax by the government on the sugar in the foods can reduce the health risks by a big margin but rather can lead to financial crisis.
Tax has and will never be a way of attracting investments in a given country. Businesses hate paying taxes. However it is a law and must be followed. When a tax policy is implemented against a certain substance used by an organization, there can be problems. The main purpose of one setting a business is because of profits. The higher the profit margin, the better the business. Taxes are ways of reducing the profits. A small percentage of the tax policy leads to a lot of losses in a business.
As indicated above, taxes discourage trade. Most of the people who invest in the food and beverage industries are private investors. Less than 10% of these companies are public corporations. When the government such policies, such companies will tend to operate at a less margin profit or at a loss. If the operation cost is the higher than the profit, the companies will abandon the product and go to other countries where there are no taxes of sugar foods. Therefore, when such investors run away, the government at first won’t even get the taxes. Secondly, there were other taxes that the government were reaping from the companies, they will be no more. Private investors provide a very big margin contribution to a country like Australia. The country will suffer from losses which will lead to borrowing of money leading to fully financial crisis in the region.
Private investors don’t help the organization only, the community also reaps benefits. The taxes that were being produced by the companies were to be used in country developments like infrastructure and other services like public utilities. When the companies close, the taxes will be no more, the infrastructures and public utilities won’t be developed further. The community need these services. These services help the citizens in their day to day businesses. If the citizens business are destructed, there can be less income in the country leading to low per capita income. The economy can be bankrupt leading to financial crisis. Private investors offer employment to people in the community. For example, a soft drinks company being closed, the thousands of employees in such a company can be left jobless. The action will increase the number of unemployment rate. The unemployment rate brings along many disadvantages. The economic growth will be reduced covering financial crisis.
People consume some products because of the sugar concentration. Some products like the beverages, they are not consumed because of health issues, and they are consumed because of taste. If the taste is removed then there can be no consumption. If the tax policy is implemented, then the amount of sugar concentration in the beverages and foods would reduce reducing the number of sales due to low consumption. The companies can suffer high margin losses and lose interest in the business leading to closure hence leading to low economic growth as explained above.
The diseases associated with the sugar concentrations cannot just be caused by the high sugar concentration only. A disease like obesity can be caused by very many factors like lack of good exercise. All these diseases are associated with other causes. The amount of consumption by an individual taking beverages per day can be excess in most occasions. A higher percentage take one to two bottles per day. The best way of reducing the rate of consumption cannot be taxes, people need to be advised on the dangers of the high sugar concentration. People won’t stop consuming drinks, but they consume and at the same time engage in health activities that can reduce the amount of sugar concentration in the body. The foods and soft drinks industries should also try and look at other ways of increasing the sugar content using natural contents like fruits in drinks.
In conclusion, high sugar concentration can be harmful in human body but taxes policy is not the best way to solve the issue. Tax of sugar content would discourage investors leading to financial crisis. People should be taught on sugar consumption and on how to reduce it. Foods and Drinks Company should better natural ways of increasing the taste.