China is weighing a proposal to impose a tax on sugary drinks as part of efforts to address rising health concerns and ease pressure on government finances, according to a report by the Financial Times.
The report said Chinese authorities are discussing a plan to tax beverages with high sugar content. Among major economies, China remains one of the few without a nationwide sugar tax. Data from the World Health Organization shows that as of mid-2024, 116 countries had introduced taxes on sugary drinks at the national level.
Officials are said to be considering a system that would apply higher tax rates to drinks containing more sugar. If approved, the tax could be added to the existing consumption tax structure, allowing for relatively quick implementation. However, no timeline has been announced.
Yang Ziyong, director of the Chinese Academy of Finance and Science, told the Financial Times that many countries, including India, have already adopted similar measures, and it may be difficult for China to avoid such a move. He said the main reason behind the discussion is the growing health challenges linked to sugar consumption.
The World Health Organization has recommended that governments introduce taxes equal to at least 20% of the retail price of sugary drinks and work toward raising prices by 50% by 2035 to reduce consumption. In China, a 500 ml bottle of Coca-Cola currently sells for about 3.5 yuan, while local brands are priced at around 3 yuan. Any new tax is expected to push up prices.
Under its 2025 Food and Nutrition Guidelines, China has set a target to reduce average daily added sugar intake to below 25 grams per person by 2030. Current estimates put average intake at around 30 grams per day.
