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QUESTION

The Australian Medical Association has proposed a national tax on sugar.

The Australian Medical Association has proposed a national tax on sugar. A consumer advocacy group "Choice & Protection" is considering the position it should take on the tax proposal, and has commissioned a report. Your terms of reference are:

"Provide a brief background on the rationale for the tax proposal and assess likely implications of a tax on sugar, including on:

  • Sugar consumption;
  • Consumer wellbeing (utility);
  • Potential impacts for different income groups;
  • Sugar production and the production and price of goods for which sugar is an input.

Based on the assessment, provide a recommendation on whether Choice & Protection should support or oppose the tax proposal."

Submit your essay in the form of a consultant's report to Choice & Protection.

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