View
217
Download
0
Category
Preview:
Citation preview
Food taxes – action in Europe
Jane Landon, Deputy CEO Wellington, February 2014
Why look at food taxes now?
• Increasing burdens of chronic diseases • Economic pressures on governments • ‘Deeply dysfunctional’ food systems “Governments have been focusing on increasing calorie availability, but they have been indifferent to what kind of calories are on offer, at what price, to whom they are accessible, and how they are marketed… [countries should] impose taxes on soft drinks (sodas), and on HFSS foods, in order to subsidize access to fruits and vegetables and educational campaigns on healthy diets.” United Nations. Report submitted by
the Special Rapporteur on the right to food, Olivier de Schutter. December 2011. A/HRC/19/59
Factors influencing consumer product choice
Source: DEFRA. 2012. Food Statistics Pocket Book 2012.
The evidence base
• Natural experiments • Modelling studies • Controlled experiments
INDIRECT EVIDENCE • Studies on tobacco and alcohol
Examples of health related food taxes
Source: Mytton, O. et al. 2012. Taxing unhealthy food and drinks to improve health: An increasing number of countries are introducing taxes on unhealthy food and drinks, but will they improve health? BMJ 2012;344:e2931.
Examples of health related food taxes
Source: Mytton, O. et al. 2012. Taxing unhealthy food and drinks to improve health: An increasing number of countries are introducing taxes on unhealthy food and drinks, but will they improve health? BMJ 2012;344:e2931.
Denmark
General tax reform in 2010
• Increase in existing taxes on sugar products, ice cream and sugar-sweetened soft drinks (SSSDs)
• Decrease in existing tax on artificially sweetened soft drinks
• New tax on foods with saturated fat content >2.3g/100g levied on commercial producers in Denmark and importers.
Effect of Denmark fat tax on consumption of fat and oils – preliminary estimates
Source: Jensen, J. Presentation to the National Heart Forum. 29 June 2012.
Change in fat product prices in Denmark post-tax
Source: Jenson, J. Presentation to the National Heart Forum. 29 June 2012.
France
French Finance Law 2012
• Tax on soft drinks (sugar-sweetened and ‘diet’ drinks)
• Explicit purpose: to raise revenues (for National Social Health Insurance and for general purposes)
• But, aligned with National Nutrition & Health Programme (2011-2015)
• Levied on drinks manufacturers, importers and food service outlets at €7.16/hectolitre (£5.66)
Econometric modelling of the impact of the tax on consumption using data from 2003-2005 Excluding drinks purchased outside the home
Drinks with added sugars All soft drinks Price % Consumption
(litre) Consumption sugar added (grams)
Price % Consumption (litre)
Consumption sugar added (grams)
Drinks with added sugars
12.7 -4.1 -242 12.1 -3.0 -131
National brands
9.4 -2.5 -150 8.6 -1.5 -53
Retailer brands
19 -1.6 -92 18.9 -1.5 -78
Drinks with sweeteners
-1.7 +1.2 1.2 -0.4
Total 8.7 -2.9 -242 11 -3.4 -131
Source: C Bonnet. Toulouse School of Economics.
Econometric modelling of the impact of the tax on consumption using data from 2003-2005 Excluding drinks purchased outside the home
Drinks with added sugars All soft drinks Price % Consumption
(litre) Consumption sugar added (grams)
Price % Consumption (litre)
Consumption sugar added (grams)
Drinks with added sugars
12.7 -4.1 -242 12.1 -3.0 -131
National brands
9.4 -2.5 -150 8.6 -1.5 -53
Retailer brands
19 -1.6 -92 18.9 -1.5 -78
Drinks with sweeteners
-1.7 +1.2 1.2 -0.4
Total 8.7 -2.9 -242 11 -3.4 -131
Source: C Bonnet. Toulouse School of Economics.
Hungary
Public Health Product Tax, 2011 • Tax on pre-packed products where healthy
alternatives are available • Explicit aim to promote healthier consumption and
stimulate reformulation. • Revenues to support health purposes. • Tax is levied on domestic producers and domestic
seller of imported goods. • Political background – limited health resources,
‘unorthodox’ fiscal policies and government willingness to regulate multinationals as necessary.
Hungary Example: Rate of tax applied to foods in Hungary (shown in Hungarian Forints and GBP)
Category From September 2011 From January 2012 Soft drinks Added sugar >8g/100ml
5 Ft/litre (1.4p/l) Syrups or concentrates for soft drinks 200 Ft/l (54p/l) Other soft drinks 7Ft/l (1.9p/l) Drinks with >25% fruit content exempted.
Energy drinks Added caffeine >10mg/100ml 250 Ft/l (68p/l)
Methylxanthines content >1mg/100ml Taurine>100mg/100ml
Confectionery Added sugar >25g/100g Chocolates: >40g/100g 100Ft/kg (27p/kg)
Added and total sugar >25g/100g Chocolate: added and total sugar >40g/100g and cocoa content <40g/100g 70Ft/kg – sweetened cocoa powder (19p/kg) 130Ft/kg all other products (36p/kg)
Salty snacks Salt >1g/100g
200Ft/kg (54p/kg)
250 Ft/kg (68p/kg)
Condiments Salt >5g/100g (exemptions for mustard and ketchup) 200 Ft/kg (54p/kg)
250 Ft/kg (68p/kg)
Flavoured beers/alcopops Beer or any other alcohol with added sugar that has total sugar content >5g/100ml 20 Ft/l (5.4p/l)
Fruit jam All fruit flavours except extra jam, extra jelly, marmalade and special quality jams 500 Ft/kg (1.37/kg)
Ireland
Effect of soda tax on obesity • Modelling study of 10% tax on sugar-sweetened
beverages in Ireland • Estimated to result in mean reduction in energy
intake of 2.1kcal/person/day • Predicted to reduce the percentage of the obese
adult population by 1.3% • Conclusion: Small but meaningful effect on obesity
Briggs A et al. BMC Public Health 2013
UKHF Symposium: Summary of recommendations
1. Taxes should be part of a package of public health policies. 2. Excise duties offer flexibility, control and focus of the tax
instrument. 3. Taxes applied to specific categories, such as sugar-sweetened soft
drinks, are easiest to apply and have fewer unintended effects. 4. Elasticity analysis and modelling to identify potential unintended
consequences.. 5. Concerns about regressivity must be taken into account, but
should not be used as barriers to implementing taxes. 6. Clear communication of the purpose of a tax and its potential
benefits, including how revenues may be used to support health programmes or subsidise healthy foods will determine public acceptance of the tax.
7. Any statutory instrument should have a ‘sunset clause’ so it is subject to review after a period of time.
Thank you
Jane Landon Jane.landon@ukhealthforum.org.uk
Recommended