Source: Gulf News · Link
It’s nice to see that some of the things we read and study in A-Level Economics are actually being implemented as government policies. The UAE government’s plan to introduce a new tax system on sugary drinks is a great real-world example of how indirect taxes are used to address negative externalities and promote healthier choices. By increasing the price of high-sugar beverages, the government hopes to reduce consumption and the related healthcare costs, while also generating additional revenue. However, there’s another school of thought that sees this as unnecessary interference in the market — limiting consumer choice and distorting free-market outcomes. It’s interesting to see how a single policy can be viewed both as a way to correct market failure and, at the same time, as a form of government overreach.