In a new study, the researchers estimated the effects tax and subsidy scenarios using data on food expenses and health. The study showed that combining taxes on saturated fat and salt with a fruit and vegetable subsidy could prevent or postpone deaths in New Zealand.
Lead researcher and Auckland University professor Cliona Ni Mhurchu said: "Our study adds to the growing body of evidence that food taxes and subsidies should improve population health and reduce inequalities."
"Although there are uncertainties around industry response to such polices and consequent effects on health gains," she said.
New Zealanders with low-income are most likely to benefit from these policies, because they experience a greater burden of diet-related disease and are more responsive to changes in food prices.
The researchers used Statistics New Zealand's Household Economic Survey to identify the kinds of food households spent their money on, then used data sets to work out how much people would buy if the food prices changed, Ni Mhurchu said.
Otago University Professor Tony Blakely said it would take "many years" for health gains from any of the policies to grow, due to delays between changing diets and changes in disease rates.
"Nevertheless, potential future health impacts are large," he said.
Heart disease causes 30 percent of all New Zealand deaths annually, the Heart Foundations says, while cancer is the single biggest killer.
The Ministry of Health estimates about 250,000 New Zealanders have diabetes, with one quarter of the population considered "pre-diabetic".
The Government has ruled out any form of tax added on to foods, but advice on regulations over sugar intake is under "active consideration".
Lives saved by taxes and subsidies:
20% fruit and veggie subsidy - 560 people
20% salt tax - 2000 people
20% saturated fat tax - 1500 people
20% foods contributing to greenhouse gas tax - 1200 people.
The research was undertaken by researchers from the Universities of Auckland and Otago, in collaboration with Oxford University.