Home News Is it a good idea to reduce the VAT on healthy foods?

Is it a good idea to reduce the VAT on healthy foods?

The German organization Food Watch has asked the European Union to reduce VAT to healthy foods to promote their consumption among the entire population. Do you think this request can work? What pros and cons do you see in this measure? Today we analyze it.

What is Foodwatch?

Foodwatch is a German organization that focuses on the protection of consumer rights and food quality. It was founded in October 2002 in Berlin by the former CEO of Greenpeace, Thilo Bode. And although they are now focused on this request, it is just one of the many measures they fight for on a daily basis. For example, in 2008 they already denounced that tap water in Germany contained some levels of uranium above what is allowed or this year they have started a campaign to end animal torture and stop cage farming in Europe.

To support the new initiative of reduce VAT on healthy foods They have added a section on their website where you can sign Quickly and safely. They currently carry more than 120.000 signatures and many more are expected to be achieved before the final decision.

VAT on healthy foods
Foodwatch company campaign | Source: Flickr @Foodwatch

Can there be positive changes in the diet of citizens?

Modify the VAT on food to help citizens to achieve a healthier diet is not something new. In fact, it is quite common among countries throughout Europe. The last event in relation to this in our country occurred a few months ago, when the Spanish government increased VAT by 21% on sugary and sweetened beverages. But then some organizations stated that, to achieve better results, this initiative should be accompanied by other complementary ones. So now Foodwatch has decided to ask the European Union to eliminate VAT from fruits, vegetables and greens in order to reduce the cost of the shopping cart for a healthy diet and promote positive changes in the diet.

The increase in VAT from 10% to 21% for sugary drinks has already been noticed in the cost of the household shopping basket. Thus, the INE highlights that, while the CPI reached 0,5%, one tenth less than what was initially advanced, compared to twelve months earlier, the so-called CPI at constant taxes remained at 0,4%.

VAT on healthy foods
Box filled with assorted fruits and vegetables | Source: Enjoyverdura.com

On what is the request to lower the VAT on healthy foods based?

The fact that Foodwatch insist right now on the reduction of VAT on fruits and vegetables is no coincidence. The company is taking advantage of the European Union he is currently conducting a review and has asked all Eurozone countries to support his measure. Since at present, it is cheaper to buy two cans of a sugary soda than to buy a few tomatoes or half a kilo of strawberries, grapes, a watermelon, lettuce, 3 kilos of potatoes, 1 broccoli (in Mercadona it costs almost 3 euros), blueberries, mushrooms, avocado (2 units usually exceed 2,50 euros), etc.

Likewise, they also base their request on recent studies that ensure that subsidizing healthy foods improves diet of the population. As for example the research he carried out in 2013 RAND Corporation, a non-profit organization that focuses mainly on public policies and their formulation, which concluded that if the prices of healthy foods were reduced, the population would increase their consumption and also add fewer unhealthy products to the shopping basket .

VAT on healthy foods
Variety of vegetables

Currently the European Union establishes a minimum rate of 5% VAT making it difficult for governments to adopt measures such as those currently proposed by Foodwatch. But maybe with him citizen support and the countries of the union end up reducing the price of these products and thus improving the diet of the entire population. And you, are you in favor of this measure to promote healthy eating and, therefore, health? Had you heard of it before we told you about it? Do you think it will be carried out successfully? We believe and hope so.

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