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Saturday, January 19, 2013

Governor Pushes for Soda and Sugar Sweetened Drink Fee


Governor Neil Abercrombie has asked state lawmakers to approve a fee on soda and other sugar-sweetened drinks. Under Abercrombie’s proposal, there will be a 1 cent per ounce fee, or $1.28 per gallon, for distributors wishing to sell in the islands. The state Department of Health estimates that this would generate $37 million a year in revenue and would be used to help with childhood obesity prevention and oral health care programs. Some of the money would be directed to adult obesity and diabetes prevention. Director of the Department of Health, Loretta Fuddy, stated, “The rationale behind putting a fee on sugar-sweetened beverages is we want to create a disincentive. And we know that cost is very much connected to our choice when we go into the market.”
The Governor had proposed a similar law two years ago, but the motion was quickly attacked by the No Hawaii Beverage Tax coalition, which is made up of dozens of businesses including Coca-Cola, Pepsi, Hawaiian Sun and Waialua Soda Works. These beverage industry companies argue that obesity (childhood and adult) are caused by a combination of food, drink and lifestyle choices. Therefore, imposing a tax only on soda and other sugar-sweetened drinks is discriminatory. Furthermore, the beverage industry cautions that higher taxes and fees would harm businesses and cause job losses and harm retailers who are recovering from the recession.
Source: Honolulu Star Advertiser, 1-19-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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