A significant increase in the retail prices of products high in fat, salt and sugar can lead to measurable changes in consumption, the European Commission pointed out in a study published on Friday 16 May. However, it is difficult to identify significant changes in consumer behaviour in Member States with very low tax rates (see EUROPE 13611/17).
Eleven EU Member States and Catalonia have introduced some form of taxation on these products. Of these, nine countries - Belgium, Croatia, Finland, France, Ireland, Latvia, the Netherlands, Poland and Portugal - and Catalonia apply taxes only on sugary drinks. While Denmark taxes food products such as ice cream, chocolate and other confectionery, Hungary taxes the two product categories mentioned above.
Demand for products with a high fat, salt and sugar content is relatively elastic, despite some variations between the Member States studied. A significant increase in retail prices can therefore lead to measurable changes in consumption, but evidence of the effectiveness of taxes on consumer goods in reducing consumption varies.
In the Member States studied, consumption of taxed beverages has fallen relative to other untaxed beverages, if the tax is high enough to trigger a measurable change in behaviour. In the case of small tax increases, these effects do not necessarily materialise in the short term.
To read the study, go to https://aeur.eu/f/gwe (Original version in French by Anne Damiani)