Denmark Nixes Soft Drink Tax

Around since the 1930s, the soda tax will be fully eliminated by January 1, 2014.

April 29, 2013

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.”

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