In: Economics
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.”