Evidence shows an association between Western lifestyle diseases and low socioeconomic status. In this regard those with the lowest socioeconomic status have the greatest risk of developing Western lifestyle diseases such as obesity, cardiovascular disease, cancer and type 2 diabetes. The reason for this association is not clear, but studies show that those with low socioeconomic status in Western countries consume lower quality foods including processed and fast foods containing high amounts of sugar, fat and salt on a more regular basis than those with higher socioeconomic status, and this may be the reason for the increase disease risk. This is supported further by studies that show that poor quality foods are associated with the development of Western lifestyle diseases. Although these associations are well reported the cause and effects however are not well understood and studies have been unable to define a definitive link between the risk of disease and socioeconomic state.
A tax on low quality food ingredients, particularly sugar, might therefore be expected to benefit the poor more than the rich. This relates to the fact that a higher proportion of the income of the poor are spent on these sort of foods and so any increase of price would proportionally affect the poor to a greater extent. In one study from Mexico, researchers collected data on the purchase of soft drinks between 2012 and 2014 following the implementation of a 2013 sugar tax of 1 peso/L (approximately a 10 % price increase based on 2013 prices). The results of the study showed a counterfactual (relative to the untaxed estimate) decrease of 6 % (-12 mL per capita per day) in sales of sugar sweetened soft drinks during 2014, and this figure had risen to 12 % by December 2014. Amongst the socioeconomic groups, the reduction in the purchase of sugar sweetened soft drinks was highest amongst the poor, with a 9 % decline in sales during 2014, and up to a 17 % decline in sales by December 2014, compared to pre-2013 sale figures.
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