The legal feasibility of adopting a sugar-sweetened beverage tax in seven sub-Saharan African countries

Figures & data

Table 1. Types of taxes and their application to SSBs (adapted from Le Bodo et al. [37]

Type of tax	Explanation
Direct tax	Levied on consumer at point of sale, e.g. sales tax, value added tax
Indirect tax	Levied on goods at different points of the supply or value chain, e.g. an excise tax that is levied on a manufacturer
Specific tax	A fixed tax amount that is added to a product
Ad Valorem tax	Based on the value or price of the product, e.g. a percentage of the price
Volumetric tax	Based on the volume of produce, e.g. a tax levied per 100 ml or litre
Tiered tax	A differential tax rate based on, for example, the sugar or alcohol content of a product
Variable tax	A varying amount of tax based on, for example, sugar content; but may have a fixed rate.

Figure 1. The FELIP framework for legal feasibility assessment

Table 2. Taxation formulations adopted by Mexico, UK, South Africa and Columbia

Country	Tax Formulation
Mexico	Specific volumetric tax
UK	Tiered tax with differential rates based on sugar content
South Africa	Variable tax based on sugar content
Columbia	Removal of a VAT exemption on SSBs – an effective direct tax of 19%

Table 3. Summary of key legal provisions related to SSB taxation in seven sub-Sarahan countries

		Botswana	Namibia	Kenya	Uganda	Rwanda	Tanzania	Zambia
Existing Legal Framework	Constitution	Limitations clause for public health purposes	Right: food (acceptable level of nutrition to improve public health)	Right: Food (free from hunger) and health	Limitations clause for public health purposes	Right: health (facilitate activities aimed at good health)	Limitations clause for public health purposes	Limitations clause for public health purposes
	Tax Laws (SSBs/sugar taxed)	Excise tax (not SSBs) VAT exemption (sugar)	Excise tax (not SSBs) VAT exemption (sugar)	Excise tax (SSBs): differential tax rates for certain beverages VAT exemption (sugar)	Excise tax (SSBs): differential tax rates for beverages Levy for HIV fund: all non-alcoholic drinks	Excise tax (SSBs): differential tax rates for beverages	Excise tax (SSBs) VAT exemption (sugar cane)	Excise tax (SSBs): differential tax rates for certain beverages*
	Taxation Rates	VAT: 12%	VAT: 15%	Excise tax on SSBs: 10 Shs/litre VAT: 16% Sugar Levy: 4%	Excise tax on SSBs: 13% or UGX 240/litre (the higher of) VAT: 18% Sugar levy: 1% HIV Fund Levy: 2%	Excise tax on SSBS: 39% VAT: 18%	Excise tax on SSBs: 54 tshs/litre VAT: 18% Sugar levy: unclear	Excise tax on SSBs: 30 ngwee/litre* VAT: 16%
Laws related to impacted sectors	Agriculture			Sugar development levy: to assist producers	Sugar levy: for revenue generation		Sugar development levy: to assist producers
	Trade and investment	SADC AU	SADC AU	EAC AU	EAC AU	EAC AU	EAC AU	SADC AU [Domestic] Tax allowances for SSB manufacturer removed
Legal infra-structure	Nutrient Label Laws	Regulation in place	Regulation in place	Regulation in place	Regulation in place	Regulation in place	Regulation in place	Regulation in place
Processes	Key Policy Makers	President	Attorney-General	Finance Committee and Minister of Finance	Minister of Finance		President and/or Minister of Finance	Any minister
	Parliamen-tary vote required	Yes	Yes	Yes	Yes	Yes	Yes	Yes

*Law not in force at time study was conducted.

Table 4. Potentially feasible formulations of SSB taxes in seven SSA countries

Tax formulation	Botswana	Namibia	Kenya	Uganda	Rwanda	Tanzania	Zambia
Specific tax	Possible to use excise tax	Possible to use excise tax	Tax exists but requires differential rates for SSBs	Tax exists but requires differential rates for SSBs	Tax exists but requires differential rates for SSBs	Tax exists but requires differential rates for SSBs	Tax exists but requires differential rates for SSBs
Tiered tax	Preliminary infrastructure in place Implementation may be difficult through indirect taxes
VAT exemption	No VAT on SSBs Consider harmonisation by removing exemptions on sugar where applicable
Existing levies			Possible to reinstate previous sugar levy to assist sugar industy to diversity	Possible to repurpose existing sugar or HIV levies which are already earmarked		Possible to repurpose existing sugar levy

Components of Review of Legal Feasibility Methodologies

	First author
Component	Graff	Snowdon	Wilde	Pomeranz	Bodo
Country of legal system	USA	Pacific islands (and others)	USA	USA	Canada
Considers only legal feasibility	X				X
Authority	X		X	X	X
Pre-emption	X		X	X
Infringement on Rights	X		X
Impact on government liability	X
Trade-related Concerns		X
Case Law			X
Existing laws related to intervention			X	X	X
Lessons from previous similar interventions			X		X
Considers how the law may facilitate adoption of intervention			X		X

Bodo YL, Paquette M-C, Wals PD Taxing soda for public health: a Canadian perspective [Internet]. Springer International Publishing; 2016 [cited 2019 Jun 24]. Available from: https://www.springer.com/gp/book/9783319336473

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