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2024 health sector report calls for broader tax reforms on unhealthy food

Questions asked on why sugar and sugary products are not being highly taxed

2024 health sector report calls for broader tax reforms on unhealthy food

Fiji taxes food rich in sugar, sugar-sweetened beverages and unhealthy snacks but the tax system could do more to promote healthier foods and drinks.

80 percent of the deaths in Fiji are attributed to Non-Communicable Diseases.

In Fiji, a diabetes-related amputation occurs every 8.5 hours.

Many diabetics who are not taking the necessary preventative steps also end up having kidney problems and need dialysis.

With many unable to afford this, they end up dying.

Questions are now being raised on why sugar and sugary products are not being highly taxed to ensure people do not consume this in high amounts.

The Fiji Health Sector Review 2024 also states that locally produced non-alcoholic beverages containing added sugar or artificial sweeteners, excluding milk-based drinks, are taxed. Imported sugar and sugar-sweetened beverages are also subject to a 15 percent import excise duty.

The review highlighted that these taxes were extended to four unhealthy food product categories in the 2023–24 budget: ice cream and other edible ice, sweet biscuits (including waffles and wafers), sugar confectioneries (excluding traditional Indian sweets), and snack foods.

They recommend that taxes should also apply to unsweetened (100 percent)juices and sweetened milk-based drinks, which pose similar health risks to sugar-sweetened beverages.

The review further highlights that Fiji could transition to a single excise tax system for local and imported sugar-sweetened beverages and unhealthy food products, with tiered rates based on nutrient content.

The report also states that Fiji raised its standard VAT rate from 9 percent to 15 percent in the 2023–24 budget.

They add salt and sugar should be subject to the standard VAT, while a limited group of healthy foods—including vegetables, fruits, nuts, and seeds—could be added to the zero-rated list.

The report proposes that Fiji consider allocating a portion of the revenue generated from sugar-sweetened beverages and unhealthy food taxes to subsidize healthier alternatives such as fruits and vegetables.

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