The British Columbia government should not institute a tax on sugar-sweetened beverages. Although there is considerable evidence regarding a relative reduction in sugar sweetened beverages, and the substitution towards the consumption juice and milk (Friedmen and Brownell, 2012). However, it should be noted that given the current market power of major carbonated beverage companies. Similarly it should be noted this tax will likely effect major soda companies like PepsiCo and Coca Cola , furthermore it also should be noted that both firms also produce and market juices. A potential strategy for these companies is raise prices across their entire product line both non-sweetened and sweetened beverages, thereby eroding the impact of such a tax.
It also should be noted that this tax is targeted to all consumers, regardless of their health status. Healthy and active individuals have no choice but to pay the additional cost of consuming any beverages added with sugar, even beverages such as sport drinks and sweetened juices. It is thus unfair for this segment of consumers to be paying for a deterrent tax that has its main focus on reducing consumption to unhealthy and obesity prone consumer segments.
The long term impact on such a tax is uncertain, it is of my personal opinion that companies and corporations will seek out new ways to continue to market its products, given most taxes are implemented on a per unit basis, companies might provide larger size packaging.