COPENHAGEN – Denmark has
eliminated the state tax on soft drinks, which has been in effect for approximately
80 years, FoodBev.com reports. The government is removing the tax as an effort
to restart the economy.
Denmark currently has one
of the highest taxes on soda in Europe. The tax will be halved starting July 1,
2013, and removed completely starting January 1, 2014.
“This decision is the
result of concerted efforts to highlight the negative impact of the tax,” said
Niels Hald, secretary general of Bryggeriforeningen, a Danish soft drink
association. “In taking this step, the Danish government acknowledged the
regressive nature of the tax, its negative impact on regional jobs close to the
borders and the adverse environmental consequences of border trade.”
The move comes after the
government ended a tax on fat and also killed a proposal to tax sugar. By
abolishing the soda tax, the country hopes to regain the 5,000 jobs lost when
Danes crossed the border to Sweden or Germany to purchase soft drinks.
“Soft drinks taxes are on
the wane and being voted down by governments and parliaments across Europe,”
said Alain Beaumont, secretary general of UNESDA. “They have not proven to
achieve any public health objectives and they destroy jobs and economic value.”