Sugary drink tax third parties (MXC) and so want to consume at the unregulated market equilibrium to maximize their utility. This means that there is overconsumption of sugar and a welfare loss is created. The sugary drinks tax, a Pigovian tax, is a way to correct the negative externality by regulating the consumption of sugary drinks. Without a sugary drink tax, taxpayer money is used to pay for higher health care costs incurred from high consumption of sugar. Although this solution corrects the negative consumption externality, taxpayers that consume sugary drinks moderately and hence do not contribute to higher health care costs, still
Sugary drink tax soda taxes. Just like with tobacco taxes, smaller communities are often the first to pass a new type of tax. Barbados passed a soda tax in September 2015, applied as an excise of 10%. Fiji has an import tax and an excise tax on soda. French Polynesia implemented taxes on soft drinks in 2002. Mauritius passed a soda tax in 2013. Nauru implemented a soda tax in 2007. Samoa passed a soda tax in 1984. In March 2014, the government of the island of St Helena, a British Overseas Territory in the South Atlantic, announced that it would be introducing