Today, 28th March 2012, the European Public Health Alliance (EPHA) Europe’s leading NGO advocating for better health outlined that taxing unhealthy food and subsidizing fruits and vegetables would not only support the fight against obesity but would also raise public revenues in a time of austerity.
Press Release
***For immediate release***
28 March 2012
Taxing junk food to raise revenue and fight against obesity, argues EPHA
Today, 28th March 2012, the European Public Health Alliance (EPHA) Europe’s leading NGO advocating for better health outlined that taxing unhealthy food and subsidizing fruits and vegetables would not only support the fight against obesity but would also raise public revenues in a time of austerity.
« Food taxation offers governments a two pronged arrow to deal with two of the most pertinent issues they face: not only tackling the obesity epidemic, the revenues produced can also boost austerity-stricken budgets. » stated Ms Kosinska to a panel of EU and national decision makers and other stakeholders at the 6th European Nutrition and Lifestyle Conference.
She also welcomed efforts by national governments (such as Denmark, Hungary or France) that have so far, implemented such measures and encouraged others to follow their examples.
Answering concerns about the impact of such taxes on low socio-economic groups, Ms Kosinska explained that « Any move taken to improve the health of people in Europe cannot be taken in isolation: Member States should not only apply taxes to unhealthy food products but work towards making the healthier option more available and affordable, through subsidies on fruits, vegetables and grain notably. »
She further explained that “Low socio-economic groups tend to spend the main part of their income on food. They choose food which is rich in energy but poor in nutrients because energy-dense products are artificially cheaper. Moreover, it is often difficult to find fresh fruit and vegetables within walking distance of disadvantaged areas. However, low income households are also the best respondents to changes in food prices. Therefore, applying a multi-nutrient tax to unhealthy food but also, crucially, subsidising wholegrain, fruit and vegetable consumption can be a good way of increasing the price of certain ‘unhealthy’ food products while promoting the consumption of nutrient-rich foods ».
EPHA has consistently supported measures taken to address the obesity crisis in Europe. Chronic non communicable diseases, including cardiovascular diseases, diabetes type 2 and cancer, account for 86% of deaths and 77% of the disease burden in the WHO European Region.
The OECD recently modeled the impact that taxation could have on reducing obesity. However, unless fully thought through and well implemented fat taxes could simply increase the proportion of the money spent by the poor on food.
With governments across Europe discussing their implementation, food taxes are now going from idea to reality, despite strong opposition from food retailers and agro-food companies.
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Note to editors
1. Contact person: Anne Hoel – 02 233 38 82 – anne@epha.org
2. The EPHA briefing on Fiscal Measures applied to food
3. EPHA is the European Platform bringing together public health organisations representing health professionals, patients groups, health promotion and disease specific NGOs, academic groupings and other health associations. Our vision is of a Europe with universal good health and well-being, where all have access to a sustainable and high quality health system: A Europe whose policies and practices contribute to health, both within and beyond its borders.
4. To have an idea of countries moving towards taxing food, EPHA reviews the evolution regularly
5. EPHA letters: EPHA letter on Irish tax, EPHA letter on Romanian tax, EPHA Press release on Danish tax, EPHA letter on Hungarian tax, EPHA letter on French tax
6. OECD report: Obesity and the Economics of Prevention: Fit not Fat, Franco Sassi, 2010
7. Chronic non communicable diseases, including cardiovascular diseases, diabetes type 2 and cancer, account for 86% of deaths (Gaining Health – The European Strategy for Prevention and Control of Non-communicable diseases. WHO, EUR/RC56/8+EUR/RC56/Conf.doc/3 30th June 2006) and 77% of the disease burden in the WHO European Region. Also, the World Economic Forum and Harvard School of Public Health estimate that NCDs will cause a US$47 trillion global economic output loss over the next two decades.
8. By having a healthy diet, being physically active, and decreasing the level of alcohol and tobacco consumption: 75% of deaths from cardiovascular disease could be avoided (O’Flaherty & Capewell S. Recent levelling of CHD mortality rates among young adults in Scotland may reflect major social inequalities. BMJ 2009; 339: b2613) (Gaining Health – The European Strategy for Prevention and Control of Non-communicable diseases. WHO, EUR/RC56/8+EUR/RC56/Conf.doc/3 30th June 2006)
