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  • TAX ANOMALIES ENCOURAGE OBESITY
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12th April 2007 Health

TAX ANOMALIES ENCOURAGE OBESITY

Over the weekend, I learned that the expression 'daylight robbery' stems from when a form of UK property wealth tax was introduced on window panes. It was curtains for the tax long ago, but many buildings still have bricked up windows or windows with large panes. In the same way, Value Added Tax in Europe needs adjusting to reflect new social concerns and product innovation. I'm thinking here of VAT on food and drink set against the continuing rise in obesity, especially amongst young people. It seems so simple to me. Most of us know we should take more exercise, but probably won't on a regular basis. We are more likely to moderate our diet, especially if given an incentive as well as the knowledge to do so. If the balance of our diet were a bit healthier, there would be less obesity. This could be assisted easily by adjusting VAT levels on healthier food and drink. Each country has its own anomalies, but in the UK two that stand out the most are :
  • 17.5% VAT on pure fruit juice including smoothies
  • 17.5% VAT on bottled water whether still or sparkling
Yet the general rate on most other foods is a giant 0%. Hmm. Governments want us to consume 5 portions of fruit and vegetables a day and less high calorie drinks, yet they also make it more difficult for people, especially those with smaller incomes and often less good health, to achieve this. Politicians are not known for their public acceptance of shame, but this state of affairs is truly shameful. If governments mean what they say about health, diet and obesity, then VAT on juice and water should be reduced to encourage rather than discourage consumption.
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