The influence of food tax on island places

Abstract

Noncommunicable diseases (NCDs) are the primary cause of premature mortality in Pacific Island Countries and Territories (PICTs), as well as in numerous other jurisdictions worldwide. The Pacific region has declared an NCD crisis and has recommended the implementation of food taxation policies to address the dietary risk factors associated with these diseases. However, the progress in this regard remains uncertain.The review focused on food taxation policies, including excise taxes and tariffs, that were implemented between 2000 and 2020 in 22 PICTs. The key characteristics of these policies were examined. The search for relevant information was conducted using databases, government legal repositories, and broad-based search engines. The identified documents for screening included legislation, reports, academic literature, news articles, and grey literature. Additionally, key informants from each PICT were contacted to gather further data and validate the findings. The results were analyzed through narrative synthesis. Out of the 22 PICTs included in the study, 14 had implemented food taxation policies, and 5 had introduced excise taxes. Processed foods, sugar, and salt were the primary targets of these excise taxes. A total of 84 changes in food taxation policies were identified across all food groups. Among these changes, a total of 279 taxes were identified based on food groups, with 85% being tariffs and 15% being excise taxes. The individual tax rates varied significantly. The most common tax design was ad valorem, followed by volumetric.