Ireland Considers ‘Fat Tax’

NACS Online
September 25, 2013

Food and beverage companies warn the government that such a tax would have little impact on obesity rates.

​DUBLIN – A tax on fat or sugar would do little to curb obesity in Ireland, food and beverage companies say, the Irish Times reports. In fact, such a tax would only drive shoppers into Northern Ireland to shop.

The Food and Drink Industry Ireland warned the government that sugar or fat taxes would have little effect on obesity rates in the country. “Denmark has had discriminatory taxes on certain products since the 1930s and still has seen increasing obesity rates,” the group said. Denmark instituted a saturated fat tax in 2011, but repealed it in 2012 after concerns about cross-border trading, competition and jobs were raised.

The industry pointed out that obesity rates continued to soar even though soft drink consumption dropped. With Ireland already staggering under high taxes on specific foods, now wasn’t the time for more food and drink taxes. “While the vast majority of foods in this country are zero rated, the standard rate of 23% VAT applies to confectionary items such as sweets, chocolate, crisps, ice-cream and soft drinks. For instance, given the proximity of the Border with Northern Ireland, consumers would be encouraged to avoid the tax by doing their weekly grocery shopping in the Border towns,” the group said.

For now, the government hasn’t responded to pleas to not include a fat or sugar tax in its budget, which is still in the planning stages. The country also has seen more gasoline stations close in recent years because of tight margins, among other reasons.