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Evaluating Saudi Arabia’s 50% carbonated drink excise tax: Changes in prices and volume sales

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  • Alsukait, Reem
  • Wilde, Parke
  • Bleich, Sara N.
  • Singh, Gitanjali
  • Folta, Sara C.

Abstract

•Saudi Arabia introduced an 50 % ad valorem excise tax on carbonated drinks in 2017.•Carbonated drinks’ tax pass through rate is 110 % (+0.82 Saudi Riyal; p-value <0.05)•Carbonated drink volume sales decreased by 35 % relative to other Arab Gulf states.

Suggested Citation

  • Alsukait, Reem & Wilde, Parke & Bleich, Sara N. & Singh, Gitanjali & Folta, Sara C., 2020. "Evaluating Saudi Arabia’s 50% carbonated drink excise tax: Changes in prices and volume sales," Economics & Human Biology, Elsevier, vol. 38(C).
    • Handle: RePEc:eee:ehbiol:v:38:y:2020:i:c:s1570677x19302515
    DOI: 10.1016/j.ehb.2020.100868
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    References listed on IDEAS

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    1. M Arantxa Colchero & Juan Carlos Salgado & Mishel Unar-Munguía & Mariana Molina & Shuwen Ng & Juan Angel Rivera-Dommarco, 2015. "Changes in Prices After an Excise Tax to Sweetened Sugar Beverages Was Implemented in Mexico: Evidence from Urban Areas," PLOS ONE, Public Library of Science, vol. 10(12), pages 1-11, December.
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    3. Lynn D Silver & Shu Wen Ng & Suzanne Ryan-Ibarra & Lindsey Smith Taillie & Marta Induni & Donna R Miles & Jennifer M Poti & Barry M Popkin, 2017. "Changes in prices, sales, consumer spending, and beverage consumption one year after a tax on sugar-sweetened beverages in Berkeley, California, US: A before-and-after study," PLOS Medicine, Public Library of Science, vol. 14(4), pages 1-19, April.
    4. Hunt Allcott & Benjamin B. Lockwood & Dmitry Taubinsky, 2019. "Should We Tax Sugar-Sweetened Beverages? An Overview of Theory and Evidence," Journal of Economic Perspectives, American Economic Association, vol. 33(3), pages 202-227, Summer.
    5. Stacey, Nicholas & Mudara, Caroline & Ng, Shu Wen & van Walbeek, Corné & Hofman, Karen & Edoka, Ijeoma, 2019. "Sugar-based beverage taxes and beverage prices: Evidence from South Africa's Health Promotion Levy," Social Science & Medicine, Elsevier, vol. 238(C), pages 1-1.
    6. Alsukait, Reem & Bleich, Sara & Wilde, Parke & Singh, Gitanjali & Folta, Sara, 2020. "Sugary drink excise tax policy process and implementation: Case study from Saudi Arabia," Food Policy, Elsevier, vol. 90(C).
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    Cited by:

    1. Jesse D Malkin & Drishti Baid & Reem F Alsukait & Taghred Alghaith & Mohammed Alluhidan & Hana Alabdulkarim & Abdulaziz Altowaijri & Ziyad S Almalki & Christopher H Herbst & Eric Andrew Finkelstein & , 2022. "The economic burden of overweight and obesity in Saudi Arabia," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-8, March.
    2. Goncalves, Judite & Merenda, Roxanne & Pereira dos Santos, João, 2023. "Not So Sweet: Impacts of a Soda Tax on Producers," IZA Discussion Papers 15968, Institute of Labor Economics (IZA).
    3. Goncalves, Judite & Merenda, Roxanne & dos Santos, João Pereira, 2022. "Not so sweet: The impact of the Portuguese soda tax on producers," Ruhr Economic Papers 938, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Gonçalves, Judite & Pereira dos Santos, João, 2020. "Brown sugar, how come you taste so good? The impact of a soda tax on prices and consumption," Social Science & Medicine, Elsevier, vol. 264(C).
    5. Judite Gonçalves & Roxanne Merenda & João Pereira dos Santos, 2024. "Not so sweet: impacts of a soda tax on producers," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(5), pages 1388-1412, October.
    6. Andrew Fearne & Natalia Borzino & Beatrix De La Iglesia & Peter Moffatt & Margaret Robbins, 2022. "Using supermarket loyalty card data to measure the differential impact of the UK soft drink sugar tax on buyer behaviour," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 321-337, June.
    7. Cawley, John & Frisvold, David, 2023. "Review: Taxes on sugar-sweetened beverages: Political economy, and effects on prices, purchases, and consumption," Food Policy, Elsevier, vol. 117(C).
    8. Suliman Alghnam & Saleh A. Alessy & Mohamed Bosaad & Sarah Alzahrani & Ibrahim I. Al Alwan & Ali Alqarni & Riyadh Alshammari & Mohammed Al Dubayee & Majid Alfadhel, 2021. "The Association between Obesity and Chronic Conditions: Results from a Large Electronic Health Records System in Saudi Arabia," IJERPH, MDPI, vol. 18(23), pages 1-10, November.

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