Government should tax soda and other sugary drink, because it brings obesity, overweight and builds a part of sedentary lifestyle that attracts diseases like diabetes & hypertension. With tax, the government will achieve two primary objectives. The first objective is to spend the tax revenue collected from these products on public health and awareness program that will can save many lives. The second objective is to decrease the overall consumption of these sugary drinks by discouraging them with higher prices. It will reduce the cases of lifestyle diseases in the country. So, applying tax, will have a positive health effect.
Here, the government has to evaluate
the elasticity of demand of the soda and other sugary
drinks and accordingly the tax is applied so that tax revenue is
optimally collected for the use of a public health drive.
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