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July 22, 2022
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Tax on soft drinks would affect 5 times more households with less income

Tax on soft drinks would affect 5 times more households with less income

The new Minister of Finance, José Antonio Ocampo, announced that, in the next tax reform, the tax not only on soft drinks and sugary drinks, but also on ultra-processed foodslike hamburger meat and sausages, from the family basket.

(Yes, there will be a tax on sugary drinks and ultra-processed foods).

Regarding the tax on soft drinks, the tax would affect almost 5 times more the population of lower strata than the upper strata.

Given that these products have a weight of 0.71% in their monthly purchases, while in the latter it is 0.15%. Which means that the weight of soft drinks in the monthly market of the poorest is 4.7 times greater.

This would make the lien a regressive tax because it would charge the poor more than the rich, without keeping the proportion of the income they receive.

(Insolvency decreased and sector confidence recovered as of May).

In the case of prepared meats, charcuterie and fried potatoes, which are part of ultra-processed foods, a similar situation would occur.

In high-income households, this category weighs 0.28% in their monthly purchases, while in the basket of poor families the weight is almost double (1.8 times) for meat and 1.7 times for meat. the French fries.

BRIEFCASE
*With information from EL TIEMPO

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