2012 saw the Italian administration throw out a tax proposal because of the impact it would have on the economy and jobs. This year we have seen Denmark, one of the pioneers of soft drinks taxation, announce the abolition of its soft drinks tax as part of a range of initiatives designed to stimulate favourable conditions for growth and employment.
The Danish example
The Danish excise tax on soft drinks had been in place since the 1930’s and was one of the highest in Europe. In abolishing it the government acknowledged its regressive nature, its negative impact on regional jobs close to the borders and the adverse environmental consequences of border trade. The move is expected to recoup most of the 5000 jobs lost when Danish people went across the borders to Germany or Sweden for their beverage purchases.
Last year Denmark also removed its fat-tax and put a halt to a proposed sugar tax because the cost and negative effects in terms of jobs and economic growth were higher than any expected benefit.