Question

The Australian Medical Association has proposed a national tax on sugar. A consumer advocacy group “Choice...

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 you to prepare 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.

Please include detailed explanation and graphs in microeconomics contexts.

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