Taxing products based on their health and environmental credentials would incentivise people to eat more sustainable diets, new research has found.
The study, published in the Nature Food journal, collected data on VAT (value added tax) rates for foods from the UK and the European Union and then used economic, environmental and health assessments to estimate the impact of changes in these rates.
Currently in the UK, most basic foods like raw meat and fish, vegetables and fruit, cereals, nuts and pulses are zero-rated for VAT. The researchers found that maintaining a zero-rating on fruits and vegetables, while increasing VAT on meat and dairy products to the full rate of 20% VAT could lead to healthier diets by reducing meat and dairy intake.
They said eating more fruits and vegetables and less meat and dairy would reduce cases of diet-related diseases such as heart disease, stroke, cancer, and diabetes, while at the same time reducing greenhouse gas emissions from livestock production.
“Setting VAT rates based on health and environmental considerations could have large implications for people’s health and the environment, alongside generating money for the economy,” said lead author Professor Marco Springmann from University College London and University of Oxford.
The use of taxes to encourage dietary change divides opinion among experts, a key concern being that it will increase the cost of food for the lowest-income citizens.
The study, however, concluded that new diets would be similarly affordable because people would be expected to replace some higher priced meat and dairy with lower-priced fruits and vegetables.
In the UK, there is currently little political support for increasing taxes on food. In his national food strategy for England, Henry Dimbleby called for the introduction of a £3/kg tax on sugar and a £6/kg tax on salt sold wholesale for use in processed foods, or in restaurants and catering businesses. However the idea was quickly dismissed by the prime minister at the time, Boris Johnson, citing cost of living pressures.
Taxing meat and dairy would also face fierce opposition from farmers and some advocates of nature-friendly farming systems who argue livestock can play a critical role in maintaining healthy ecosystems.
