Broad sugar tax on food feasible and tenable

A recent report by Ecorys, commissioned by the Ministries of Finance and Health, shows that a broad sugar tax on food is not only feasible but also offers significant health benefits. The study indicates that this tax primarily impacts the highest sugar consumers, leading to a substantial reduction in sugar consumption and improved public health.

Effectiveness of a broad sugar tax

The sugar tax, which has been in place for non-alcoholic beverages since 1993, has proven effective. This new study explores the potential for broader application to other food products. The findings reveal that such a tax can significantly reduce sugar consumption, particularly among the top twenty percent of sugar consumers. These are the individuals who consume the most sugar and thus stand to gain the most health benefits.

Financial and legal aspects

Ecorys has calculated several variants of a broad sugar tax, with an estimated revenue ranging from €700 million to €1.2 billion. Legally, a sugar tax can be structured to be sustainable under certain conditions. These financial returns and legal sustainability make a broad sugar tax a potentially effective tool for promoting public health.

Political decision-making

During the debate on the Future Vision for the Agricultural Sector on March 27, members Van Campen and Tielen submitted a motion. They advocate for the follow-up of this research by the next cabinet, considering the potential tax burden on households. The interim cabinet will implement this motion, leaving further follow-up of the research to the House or a new cabinet.

Ecorys' research provides valuable insights into the potential benefits of a broad sugar tax. It is now up to policymakers to use this information for future decisions regarding public health and tax policy.