Photo AI
A tax on sugar-sweetened drinks was introduced in the Government Budget 2018 - Leaving Cert Economics - Question c - 2018
Question c
A tax on sugar-sweetened drinks was introduced in the Government Budget 2018. (i) Outline two reasons why the government introduced the sugar tax. (ii) Outline two... show full transcript
Worked Solution & Example Answer:A tax on sugar-sweetened drinks was introduced in the Government Budget 2018 - Leaving Cert Economics - Question c - 2018
Step 1
Outline two reasons why the government introduced the sugar tax.
Answer
-
Reduce consumption of sugary foods / reduce obesity levels: The introduction of the sugar tax is intended to discourage the purchase of sugar-sweetened drinks by increasing their price. This price increase acts as a financial disincentive, aiming to lower consumption and consequently help reduce obesity levels in the population.
-
Revenue for the state: The sugar tax is expected to generate additional revenue for the government, which can be allocated towards funding various public services, including healthcare and educational initiatives aimed at combating obesity.
Step 2
Outline two possible advantages and one possible disadvantage of this sugar tax for consumers in Ireland.
Answer
-
Advantage: Healthier lifestyle / reduction in obesity: By reducing the consumption of sugary drinks, consumers may lead healthier lifestyles and experience a decrease in obesity rates in the long run.
-
Advantage: Possible increase in disposable income: If consumers substitute sugary drinks for lower-priced, healthier alternatives, they might save money over time, increasing their disposable income.
-
Disadvantage: Higher prices for consumers: The sugar tax may result in higher prices for sugar-sweetened beverages, disproportionately affecting lower-income consumers who spend a larger percentage of their income on these products, thus raising concerns about fairness.