WHO blindly wants to increase COD’s revenue from sugary drinks
October 19, 2016
A big increase in the price of soda at College of DuPage (COD) could benefit both students’ health and the college’s finances, according to a recent report by the World Health Organization (WHO). But the benefit would come at a 20 percent increase in vending machine prices.
COD received $54,476 a 26.5 percent of sales from the vending machines that serve sugary drinks like Pepsi around campus in the fiscal year 2016. But a call from WHO for countries around the world to raise taxes by 20 percent on the sale of sugary drinks like sodas, sport drinks and other fruit juice, means students may pay more at campus vending machines, and more money from sales are expected.
WHO’s request was published in the release of a 36-page report on fiscal policy and diet. WHO is a major organization under the United Nations that tackles issues related to public health. They are also responsible for publishing the World Health Report.
WHO is calling for this abrupt action in the wave of an increase in the amount of persons suffering from obesity around the world. The organization claims that “From 1980 to 2014, 40 percent of people globally were overweight.” This call to action is also intended to curb the amount of complications that result from tooth decay and diabetes.
“Consumption of free sugar, including products like sugary drinks, is a major factor in the global increase of people suffering from obesity and diabetes,” said Dr. Douglas Bettcher, director of the Department of Prevention for Non-communicable Diseases. “If governments tax products like sugary drinks, they can reduce suffering and save lives.”
This abrupt tax increase is of concern to students who just don’t consume a lot of sugary drinks.
“I feel like it would affect our society because people are sometimes addicted to these sugary drinks. However, on a personal level, it might not affect me that much since I’m not attached to them,” said Jacqueline Rangel. “But I can see where it can cause controversy with people because the increase of tax can be seen as an inconvenience for people with larger families. It can get to a point where it can make a huge difference. If the taxes are lower, I can see where people will just ignore the price and just continue consuming these drinks.”
Leading sugary drinks manufacturers have resisted this move, while health practitioners are insisting that sugary drinks are a main culprit in the world’s obesity problem.
There have been mixed feelings about this decision taking into consideration the health issues stressed by WHO.
“This would be a good way of reducing our propensity to purchase these types of products, especially as it relates to our young people who probably drink them the most and may be affected later in life,” said Peter James an associate professor of Business at COD.
“It has been accomplished with cigarettes,” James continued. “That being stated, from a capitalistic standpoint, if I am a manufacturer, this would not be fair and equitable. I have as much of a right to sell my products as someone who sells high caffeine energy drinks. Why should I be taxed and no one else? This is not a banned substance such as illegal drugs. Therefore, why don’t allow people to decide what they put into their bodies.”
James reiterated the successes of the United States’ economy is based on its toleration of manufacturers and companies selling foods to the general public and priced according to market demands.
Another student looked at this tax increase from an economic perspective.
“This proposed tax increase will affect people in a negative and positive ways,” said Esly Vargas. “It will stop people from drinking sodas and they won’t be unhealthy. By increasing the cost it is going to affect the economy in a bad way. There is going to be fewer consumers that will purchase these drinks.”
What is ironical about this proposal it that the WHO isn’t calling for a decrease in the price of healthy drinks and an increase in the price of sugary drinks, something that is of concern to Melissa Deanda.
“I believe it is for a good cause, but it will have an effect on lower income families, just because lower income families are the main consumers of these products. If they are increasing the tax that means they are going to purchase these drinks, and by that it means they have to purchase healthy drinks that are quite expensive,” said Deanda.
Just last week, Cook County Board President Toni Preckwinkle announced her 2017 budget plan will include a penny-per-ounce tax on sweetened drinks. Her plan will see a $75 million increase in revenue for a county that is faced with fiscal problems.
The Illinois Beverage Association (IBA) warned that this would basically mean a 70 percent increase in the price of sodas and other drinks. This proposal could see itself on the table for discussion in other counties across the state. Many believe it is just a way for cities to increase revenue since there is no tangible evidence that supports an increase in the price of sodas causing lower consumption by consumers.
Cities that have enacted a sugar tax increase have to deal with long legal proceedings. Philadelphia, for example, is dealing with a lawsuit filed by the American Beverage Association (ABA) aimed at stopping a 2017 1.5 cents-per-ounce tax increase in the City of Brotherly Love.
It is uncertain whether this tax increase will stop students from drinking sugary drinks. So the health benefits of increasing taxes on sugary drinks as being the alternative to minimizing obesity is still uncertain.
“I will just pay more for sugary drinks since it is a matter of want and something I am going to buy regardless of the price,” said Mitchell Miller.
If this law is something that the state of Illinois or DuPage County will consider, COD will see an increase in the money it makes from vending machines with students likely to continue buying sugary drinks at whatever price.
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