Tax

Fruits/ Vegetables/ Healthy Food

Liliya Trott - stock.adobe.com
Studies & Numbers

Study Recommends Reforming VAT Rates to Increase Affordability of Sustainable Foods

A study led by researchers from the Environmental Change Institute and the Oxford Martin School has recommended that VAT (value-added tax) rates on food should be set based on health and environmental considerations. The authors suggest that meat and dairy products should be subject to full VAT rates, while fruits and vegetables should be zero-rated. They say this would help consumers choose healthier and more sustainable diets; on average, it is expected that fruit and vegetable intake would increase by around a portion per week, while meat consumption would decrease by the same amount. The researchers estimate that these reforms could reduce cases of diet-related diseases such as heart disease, stroke, and diabetes by 170,000 per year in the UK and EU. Meanwhile, greenhouse gas …

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Four cows in a field

© AF -stock.adobe.com

Agriculture / Agribusiness

Denmark to Introduce “World’s First” Carbon Tax on Animal Agriculture

Denmark looks set to introduce what is claimed to be the world’s first carbon tax on agriculture, following negotiations between the government, farmer organisations, trade unions, industry, and environmental NGOs. The agreement is expected to be formally approved by the Danish parliament in August, and will see a tax of DKK 300 per tonne CO2e introduced on livestock emissions from 2030. This will rise to DKK 750 per tonne CO2e in 2035, but with a basic deduction of 60%; this means that the effective tax will be DKK 120 (€16) per tonne in 2030 and DKK 300 (€40) per tonne in 2035. The proceeds raised by the tax in 2030-31 will be returned to the industry as a support fund to aid the green transition. …

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Supermarket shelves with alt milk courtesy ProVeg

Image courtesy ProVeg
Milk- and Dairy Alternatives

Plant-Based Brands Condemn “Discriminatory” Taxes on Milk Alternatives in Belgium

Plant-based brands are drawing attention to the disparities in taxes on milk alternatives in Belgium, which have been described as “discriminatory”. Like cow’s milk, rice and soy milks are exempt from taxes, but other types — such as almond, oat, and pea — are not legally considered to be alternative milk sources. This means they are taxed at a rate of 22 cents for sweetened drinks and 17 cents for unsweetened. Unexpected bill One company that has fallen victim to this disparity is Tiptoh, a Belgian pea milk producer. When the company first launched, the founders assumed their product fell within the milk alternative category. However, they then received a bill for €30,000 in excise duties, plus a €10,000 fine. “I had no idea we …

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Oatly's oat milk cartons

© Oatly

Milk- and Dairy Alternatives

Most Plant Milks to Face 196% Tax Increase in the Netherlands

Many plant-based milk alternatives could be subject to a 196% tax increase in the Netherlands next year because they are classed as soft drinks. Oat, almond, and coconut milk will all face higher taxes, with the rate increasing from 9 to 26 cents per litre. Dairy milk will be exempt as it is considered a “basic necessity”, while soy and pea-based milk alternatives will also avoid the tax rise as their protein content is comparable to cow’s milk. The tax has been questioned by the country’s Party for the Animals, which said it was illogical to group plant milks with drinks such as Coca-Cola. The Dutch government responded that milk alternatives had not been researched enough to determine their health impact, and said recommendations were …

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