English to Russian Other Law: Taxation & Customs Sugar-Sweetened Beverages Taxes

Taxes impose a charge that producers (and/or importers) must pay to the government, and many producers respond by increasing prices of taxed products to recoup the cost of the tax. Given the central role prices play in consumer responses to tax policies (measured by how much they decrease consumption), the price changes arising from implementation of new taxes or increases in existing taxes have been subjects of significant study. This price impact is typically quantified in proportional terms as the “pass-through rate” of the tax, or in other words how large the price increase is relative to the magnitude of the tax. An SSB tax can have full pass-through (100% of the tax increase is reflected in the price increase), under-shifting (less than 100% of the tax is reflected) or over-shifting (more than 100% of the tax is reflected). Across settings and within settings, there is variation in pass-through rates arising from differences in local beverage market conditions, consumer income and price sensitivities, and tax design. A recent systematic review and meta-analysis on the effectiveness of fiscal policies, including on SSB taxes around the world found a significant increase in the price of taxed beverages and a pass-through rate of 82%.