Table 1.
Estimated revenue generation from a SSB tax in the Solomon Islands at different tax rates
| Annual Household acquisition (g) | Total consumption after 20% taxa | Tax revenue at 20% tax (SBD) | Total consumption after 40% taxa | Tax revenue at 40% tax (SBD) | |
|---|---|---|---|---|---|
| $4/l (liquid SSB)b $0.03/g (powder SSB)b $0.01/g (ices)b |
$8/l (liquid) $0.06/g (powder) $0.02/g (ices) |
||||
| 3-in-1 powder (coffee, tea) | 343 957 014 | 282 044 751 | 7 897 253 | 220 132 488 | 12 327 419 |
| Carbonated soft drinks | 529 536 671 | 434 220 070 | 1 823 724 | 338 903 469 | 3 647 448 |
| Frozen ices | 335 488 801 | 275 100 816 | 3 301 209 | 214 712 832 | 6 602 419 |
| Juice drinks, cordial, flavoured powders | 112 627 045 | 92 354 176 | 387 887 | 72 081 308 | 775 775 |
| Chocolate powder drinks | 40 386 522 | 33 116 948 | 927 274 | 25 847 374 | 1 854 549 |
| Total (SBD)c | 1 361 996 053 | 1 116 836 763 | 14 337 349 | 871 677 473 | 25 207 611 |
| Total (USD) | 163 439 526 | 134 020 412 | 1 720 482 | 104 601 297 | 3 024 913 |
a
Based on price elasticity of demand for SSBs of −0.9.
b
Modelling rate established based on surveyed price for that type of SSB.
c
SBD = 0.12 USD (as at February 2018).