Denmark abolishes excise duty on Soft Drinks. Reformulating chocolate is also a challenge since fat remains even after sugar is removed, he added. Danish excise duties on confectionery, ice cream and soft drinks have been raised in 2013, making it "very difficult" to be a Danish food and drink company, according to leading domestic confectioner Toms. The announcement on excise tax follows the removal of the fat-tax and the halting of the proposed sugar tax last year and clearly demonstrates that the cost and negative effects of such duties in terms of jobs and economic growth are higher than any expected benefit. In 2012, the levy on chocolate and candy was raised again to DKK 23.75 (€3.18) or DKK 20.2 (€2.71) for low-sugar products and again in 2013 to DKK 24.61 (€3.57) or DKK 20.93 (€2.81) for low-sugar items. In 2010, it was upped from DKK 14.20 (€1.90) to DKK 17.75 (€2.38) per kilo and a reduced rate of DKK 14.20 (€1.90) was introduced for products containing less than five grams of sugar per kilo.Â. “It’s much easier to tax specific foods, say a tax on sugary sodas, than to tax at the nutrient level like a fat tax or a sugar tax.” The Danish … Sugar has now replaced saturated fat as the health scare du jour and the conspicuous failure of the Danish experiment casts a long shadow over attempts to bring in a sugar tax. Denmark already taxes chocolate, soft … and population health.2It is therefore proposed that a tax rate of R0.0229 (2.29 cents) per gram of sugar be implemented based on the current product labelling framework. vOut += aTags[i].trim().replace(reg, '-').substring(0,40); Public health advocates say an SSBT in Australia and New Zealand could help reduce consumption of SSBs and thereby reduce obesity and other associated diseases. A sugary drink tax, soda tax, or sweetened beverage tax (SBT) is a tax or surcharge (food-related fiscal policy) designed to reduce consumption of drinks with added sugar.Drinks covered under a soda tax often include carbonated soft drinks, sports drinks and energy drinks. This policy intervention is an effort to decrease obesity and the health impacts related to being … — Denmark introduced a tax on sweetened soft drinks in the 1930s which by 2013 was being levied at … sugar tax, Denmark the income year. George … He said the levy has led to higher prices for consumers who were tempted to travel across borders in search for cheaper options and had incentivised companies to move production volumes out of Denmark. contact, 18-Feb-2013 $(document).ready(function() { He said there should be more incentive to produce products with reduced calories. The tax has been in place since the 1930s, and Danes are currently taxed DKK 1.64 (about €0.22) per litre of sugar-sweetened soft drink. The dramatic rise in the sugar tax on confectionery and sweetened drinks may well have contributed in the past year, Granlund said. SUGAR TAX CALCULATOR. return vOut; fizzy drinks (including low calorie versions) in 2012. Welcome to our Sugar Tax Calculator. } Møller said these types of products were much more expensive to produce and consumers would get around 40% less volume per kilo, and would pay substantially more for the privilege. { dataLayer.push(dataLayerNews); That, you might think, would be the end of it, but you would be wrong. Tax calendar; Month Mexico introduced a sugary drinks tax of around 10 per cent in January 2014. Denmark was the first western nation to adopt a broader "fat tax" in 2014. Sugar tax critics argue it pushes up drink prices and penalises the poor. A sugar tax would be highly regressive and given the evidence against its effectiveness, it could seem like an ... BBC, 2012, Denmark to abolish tax on high-fat foods British Medical Association, 2015, Food for thought: promoting healthy diets among children and young people A specific excise tax can be calculated on either the volume of the drink … Your tax is calculated on the income you have had during a calendar year, i.e. Finland’s first tax on soft drinks dates to 1940, and Norway first implemented one in 1981. The current rates are DKK 24.61 (€3.57) per kilo of chocolate and sweets, DDK 6.61 (€0.89) per litre of ice cream and DKK 1.64 (€0.22) per litre of soft drink. vOut +=', '; Please note: your email address is provided to the journal, which may use this information for marketing purposes. Denmark’s so called fat tax on foods high in saturated fats has been repealed by the Danish parliament only one year after being introduced. He said that the high prices stimulated consumers to import cheaper options themselves from Germany and Sweden. The government’s case hinges on a set of assumptions, each deeply flawed . This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. Emily In Paris writer slams I … - Last updated on This tax is deductible for income tax purposes. The property and land tax is calculated on the basis of the land value and is settled by the municipal council. Jesper Møller, managing director of Toms Gruppen, Denmark’s leading confectioner, said: “It is making it very difficult to be a Danish producer…From what we produce in Denmark, the government gets a lot of revenue.”​. According to Euromonitor International, Danish consumers have been putting less in their baskets and are buying smaller portions, leading to volume sales declines in levied categories such as ice cream and confectionery, which have also seen higher unit prices. var reg = new RegExp('\\W+', "g"); Luxury and excise taxes. In announcing the repeal of the fat tax, the Danish tax ministry said it had also cancelled plans to introduce in January a sugar tax (on foods with added sugar, such as yogurt, marmalade, pickles, and ketchup). There are two bands, one for sugar content above 5g per 100ml and a second for drinks with 8g per 100ml. This rate roughly equates to a 20 per cent tax incidence for the most popular soft drink (i.e. ... Denmark to build world's first 'energy island' 6. Sugar Confectionery in Denmark - Category analysis KEY DATA FINDINGS 2020 IMPACT Sugar confectionery largely benefits in 2020 from the pandemic, however some product areas suffer in response to lockdown ... Cross-border trade will likely lead the government to bring in new tax policies over the forecast period { Denmark is a member state of the European Union, and, according to EU’s Common Customs Tariff, many goods imported into Denmark from outside the European Union are subject to customs duties. Denmark introduced a wide-ranging tax on saturated fat in October 2011 before repealing it in January 2013. Countries including Denmark and Iceland have reduced or abolished existing taxes, citing a variety of reasons. for (var i=0; i < aTags.length; i++) The evidence is clear: sugar taxes just don’t work. In Denmark, numerous excise taxes and duties apply on goods (e.g. The tax’s primary objective was to push consumers towards healthier alternatives, and the impact of this was felt immediately. The sugar tax - officially the soft drinks industry levy - was introduced in April 2018. Subscribe If you have a subscription to The BMJ, log in: Subscribe and get access to all BMJ articles, and much more. Explore the EXBERRY® Oil Dispersible range, White Paper: A Renewed Urgency for Sugar Reduction, Buyer’s guide: Highly flexible PET preform injection molding systems, The clock is ticking for catering businesses in the UK, Coming Clean: Sustainable labels for bold brands, Sign up to our free newsletter and get the latest news sent direct to your inbox, Carbohydrates and fibres (sugar, starches), News & Analysis on Food & Beverage Development - Europe. Hungary and Finland both tax a range of high calorie food products as well as sugary soft drinks. A sugar tax is a tax on sugary drinks, also called a Sugar Sweetened Beverage Tax (SSBT). dataLayerNews.related_tags = sanitize_gpt_value2("sugar tax, Denmark"); Scandinavia’s largest confectioner Cloetta recently reported​ a 20% fall in earnings for 2012 and cited the “sugar tax”​ in Demark as a contributing factor. The rates of duty vary widely between goods. You can download a PDF version for your personal record. The controversial tax, designed to improve the health of Danes by discouraging consumption of fatty foods, was opposed by farmers and food companies and was unpopular among consumers. We do not capture any email address. Copyright - Unless otherwise stated all contents of this web site are © 2021 - William Reed Business Media Ltd - All Rights Reserved - Full details for the use of materials on this site can be found in the Terms & Conditions, Related topics: The Danish tax on chocolate and candy was introduced in 1922 and has undergone three hikes in the past four years. 19-Feb-2013 at 10:38 GMT. NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. It went unlamented into the dustbin of history in January 2013, along with plans for a sugar tax. If you are unable to import citations, please contact Sign up to our free newsletter and get the latest news sent direct to your inbox. Toms recently launched wine gums and licorice that substituted sugar with stevia and fibres. The “sugar tax” is based on the weight or volume of the product and not on the content of sugar. Some countries, however, tax soda that contains sweeteners or only includes added sugar (as opposed to total sugar). Møller added that the levy had been a factor in flat Danish exports sales and a leakage of industrial production jobs to Germany. The tax will be reduced by half on July 1, 2013 and then fully eliminated at the start of 2014 – but it does not affect other existing excise duties on sugar-containing products, such as those on confectionery and ice cream. By Madeline Grant April 10, 2018 The arrival of a new sugar tax on soft drinks last Friday has been welcomed by many public health bodies. The World Health Organisation released a report last month calling for governments around the world to introduce a tax on sugary drinks, and referred in … to reduce sugar consumption (8). There are reasons why policymakers here have ruled out persistent calls for a sugar tax on a range of products, including soft drinks: there's no global evidence anywhere it works and it would hit the poorest households the hardest. The “sugar tax”​ is based on the weight or volume of the product and not on the content of sugar. Copyright © 2021 BMJ Publishing Group Ltd     京ICP备15042040号-3, Denmark cancels “fat tax” and shelves “sugar tax” because of threat of job losses, Calderdale & Huddersfield NHS Foundation Trust: Consultant in Stroke Medicine, Kent and Medway NHS & Social Care Partnership Trust: Consultant Psychiatrist - The Beacon, Tolsey Surgery: GP Partner in Rural North Wiltshire, H&F Partnership: Salaried GP, West London, 4 to 8 sessions, Women’s, children’s & adolescents’ health. The tax is expected to raise around €40m ($45m) in its first year. Examples of drinks which would currently fall under the higher rate of the sugar tax include full-strength Coca-Cola and Pepsi, Lucozade Energy and Irn-Bru, the Treasury said. Companies complained that the tax was a bureaucratic nightmare, increasing administrative costs and putting jobs at risk, and consumers in Denmark were making shopping trips to Germany and Sweden to avoid the tax. if(i!=(aTags.length-1)) Savings on healthcare • Estimates suggest that, over 10 years, a tax on sugary drinks of 1 cent per ounce in the United States of This tax calendar is designed to help you meet your tax obligations and to keep track of important tax dates during the year. While soda taxes are a more recent trend, two Scandinavian countries started levying an excise duty on sugary drinks decades ago. The fat tax was levied on all foods containing more than …. vOut = vOut.toLowerCase(); light balls, sugar, liquor, tobacco). } Note that in Denmark, a tax year corresponds to a calendar year. technical support for your product directly (links go to external sites): Thank you for your interest in spreading the word about The BMJ. • Evidence shows that a tax on sugary drinks that rises prices by 20% can lead to a reduction in consumption of around 20%, thus preventing obesity and diabetes (9). Toms had lobbied for a discounted 15% discounted levy for products that contain less than five grams of sugar per kilo. The sugar tax will be increased in two phases and in the fourth year, drinks that contain sugar beyond the World Health Organization (WHO) standard will be taxed double. The tax is collected in each municipality. The shipwreck of Denmark’s notorious ‘fat tax’ should have served as a lighthouse for politicians for a generation. Despite the seemingly universal vilification of sugar, there are still geographic pockets with a strong opposition to sugar taxes. Coca Cola, averaging 35 … The excise levy is not to be confused with the Danish “fat tax” ​placed on foods high in saturated fats that was introduced in 2011 but scrapped last year. Market Trends, Free newsletter In April last year, Toms concluded a lease of a 10,000 m² facility in Leszno, Poland, to wrap chocolate products for the Danish market and for export. Møller said that all companies, big and small, had been forced to add the cost of the levy to the retailer invoice, which affected relationship with retailers wanting to have low price points and ultimately hit the consumer. 13, 2012) In order to improve the health of its citizens by reducing their use of sugar, Denmark's government is considering taxing the product. dataLayerNews = {}; For sugar-sweetened drinks with a content of 5g sugar or more per 100ml, a tax of 20c (USD 22c, GBP 18p) per liter applies; and for drinks with 8g sugar or more the rate is 30c (USD 34c, GBP 27p per liter). There was a proposal last year to extend the levy to other products high in sugar, but the proposal was never introduced in parliament. function sanitize_gpt_value2(gptValue) The official aim of this reform was to replace part of Denmark's relatively high income tax, with marginal rates varying from 42.1% to 63%, by levies including new "health" taxes such as the fat tax. Enter your details below and let us do the leg work for you… Denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. var vOut=""; The sugar tax has had a surprising effect on soda companies. var aTags = gptValue.split(','); Subscribe, By Oliver Nieburg Denmark’s so called fat tax on foods high in saturated fats has been repealed by the Danish parliament only one year after being introduced. Møller added that the more difficult the home market became for Danish food and drink manufacturers, the more firms would look elsewhere to increase volumes. Related tags: Customs duties. Access this article for 1 day for:£30 / $37 / €33 (excludes VAT). The sugar tax in France. Does any country have experience of a sugary drinks tax? The current rates are DKK 24.61 (€3.57) per kilo of chocolate and sweets, DDK 6.61 (€0.89) per litre of ice cream and DKK 1.64 (€0.22) per litre of soft drink. Companies complained that the tax was a … It will be further increased in the sixth year. Australia has an obesity problem. Tax avoidance may have an unexpectedly healthy silver-lining. “We argue that’s not enough,” ​said Møller. Not all … The controversial tax, designed to improve the health of Danes by discouraging consumption of fatty foods, was opposed by farmers and food companies and was unpopular among consumers. }); In Denmark, there are excise duties on chocolate, candy, ice cream and soft drinks - commonly referred to as a “sugar tax”​ – intended to curb obesity. Free newsletter This tool will help you work out whether your drink could be taxable by the soft drink levy introduced in 2018. Denmark: Tax on Sugar Proposed (Mar. We’ve created this global sugar tax infographic to show, geographically, how the sugar tax trend has spread. 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