Food tax Commission study: Do taxes impact industry’s competitiveness?
In July, the European Commission released the results of a study it had commissioned on food taxes and their impact on the competitiveness of the agri-food sector. The completion of this study by the Commission is one of the key achievements of the High Level Forum (HLF) for a Better Functioning Food Supply Chain.
FoodDrinkEurope welcomed the publication of these findings, which show that indeed food taxes do damage the competitiveness of the agri-food industry and particularly affect SMEs. In addition, the study shows no conclusive evidence that taxing food and drink products for public health purposes is an effective way of changing consumer behaviour.
As a follow up, FoodDrinkEurope published a summary of the Commission study in October. It highlights the study’s statement that there is "no robust conclusions on the impact of food taxes on public health” and that “the effectiveness of food taxes in curbing obesity is therefore uncertain”.
FoodDrinkEurope believes food taxes to be discriminatory, as they target certain food products and ingredients and generate uncertainty for ongoing investment plans and trade agreements. They also distort the functioning of the EU internal market and generate unfair competition, therefore threatening the industry’s ability to provide jobs and growth for the European economy.
The Commission study can be found here: “Food taxes and their impact on competitiveness in the agri-food sector"; click here to read FoodDrinkEurope’s summary.