Australia considers new tax on obesity

Obesity has become a major health concern in Australia, contributing to the highest number of preventable deaths—surpassing even those caused by tobacco use.

In response, the Australian Medical Association is urging the federal government to impose a tax on high-sugar beverages. Experts propose a levy of 50 cents per 100 grams of sugar, which could raise the price of a 375ml soft drink by about 20 cents.

If left unaddressed, the growing obesity crisis could cost the Australian health sector an estimated $38 billion. However, the proposed tax is expected to reduce individual sugar consumption by approximately 2 kilograms per year while generating around $3.6 billion in government revenue.

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