High economic inflation has brought back some old debates and one of them is whether healthy and sustainably produced food should have the same VAT. That is, reduce VAT on sustainable food. And it is that if this tax should serve to help society, it is not the same if a product helps or harms people in their health. In addition, less healthy products have a higher final economic cost and provide a worse quality of life for people.
According to a study by axfood , in Sweden, states that 76% of consumers believe that lowering VAT is a very good measure to promote sustainability. Reducing or eliminating VAT on products labeled as sustainable is the most effective way to achieve rapid and noticeable change. These are the conclusions of this Swedish study that seeks answers on how to promote sustainable production.
For all this we should be clear and show on the label that it is a sustainable and healthy product. It seems that this consensus is not easy but it is very necessary to advance in a better diet and that it is understandable for all. It is also a way to support sustainable agriculture and livestock that work in the territory.
Less taxes for sustainable food, more taxes for the unsustainable
So the Swedish formula would be to penalize food with less sustainable production. Also the less healthy ones like the ultra-processed ones would be a good formula. According to the director of the Swedish report Asa Domeij, “the reduction or elimination of VAT on sustainable food would have a double effect. On the one hand, reduce the price level for consumers. On the other, accelerating the pace of the green transition towards more sustainable production.
The Swedish proposal that will be taken to the European Union calls for the differentiation of VAT to help sustainability. An action that would promote not only producers if not to restaurateurs and merchants who work sustainably throughout the chain.
