The impact of a tax on added sugar and salt: an Institute for Fiscal Studies working paper

Sugary drinks taxes have been implemented around the world, and governments around the world are considering extending these taxes to address concerns about rising obesity. We demonstrate the range of impacts a tax on added sugar and salt could have on purchases of food at home and out of the home in the UK. The impact will depend on how firms and consumers respond. There is considerable uncertainty about each of these. Therefore we take a very robust approach and consider scenarios that cover the full range of realistic possible levels of response – from very responsive firms and consumers to non-responsive firms and consumers, and everything in between.