SHARE
COPY LINK

FAT

Sweden needs a fat tax to tackle obesity: expert

A leading Sweden nutrition expert on Friday argued that Sweden should follow neighbours Denmark and introduce a tax on fats in order to help in the fight against obesity.

Sweden needs a fat tax to tackle obesity: expert

Denmark’s “fat tax” is set to come into force on October 1st.

“I think we need a tax on saturated fat and on sugar, and perhaps above all, on soft drinks,” said Claude Marcus at Karolinska Institute to The Local.

Marcus explained that for the last 20 to 30 years, Sweden has undergone a very unhealthy price level shift, where candy and soda has become cheaper, while vegetables and fruits are getting increasingly expensive.

“This is an imbalance that’s harmful to the public health,” he said.

“Sweden has never before seen as much obesity and overweight people, and it’s a problem that costs 20 billion kronor ($2.9 billion) per year. Type 1 diabetes continues to increase and we don’t exactly know why, but we know that your lifestyle certainly affects it.”

But what Marcus suggests is not necessarily something that would make grocery shopping more expensive to Swedes, perhaps just change the balance.

“I think it’s reasonable when you know the dangers of these products, that you adjust taxes,” Marcus argued. “There would be a quite substantial tax for soft drinks and saturated fat, and use that money to lower or remove sales tax on fresh vegetables.”

In spite of this awareness and comparable tax increases for alcohol and tobacco, this is not a big debate in Sweden. Marcus finds this surprising since polls have shown a positive attitude among Swedes for the amendment in taxes.

According to a report from TV4 news, the average Swede eats more than 15 kilogrammes of candy per year, which is about double the European average.

Annica Sohlström, Head of the Nutrition Department at the National Food Agency (Livsmedelsverket), said this is a result of the popularity of pick-and-mix candy.

“There aren’t many countries in the world that has this model where you pick your candy with a big spoon into a big bag,” Sohlström told TV4. “It’s easy to buy a lot more than what you had in mind.”

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

TAXES

Beskæftigelsesfradraget: What is Denmark’s employment allowance?

Denmark's government may soon announce changes to its tax reform plans, which will give all wage earners a bigger employment allowance. What is this and how will it affect foreigners' earnings?

Beskæftigelsesfradraget: What is Denmark's employment allowance?

What is the employment allowance? 

The Beskæftigelsesfradraget (from beskæftigelse, meaning employment, and fradrag, meaning rebate) was brought in by the centre-right Liberal Party back in 2004, the idea being that it would incentivise people to get off welfare and into a job.

Everyone whose employer pays Denmark’s 8 percent AM-bidrag, or arbejdsmarkedsbidrag, automatically receives beskæftigelsesfradraget. Unlike with some of Denmark’s tax rebates, there is no need to apply. The Danish Tax Agency simply exempts the first portion of your earnings from income taxes. 

In 2022, beskæftigelsesfradraget was set at 10.65 percent of income with a maximum rebate of 44,800 kroner. 

How did the government agree to change the employment allowance in its coalition deal? 

In Responsibility for Denmark, the coalition agreement between the Social Democrats, the Liberals and the Moderate Party, the new government said it would set aside 5 billion kroner for tax reforms.

Of this, 4 billion kroner was earmarked for increasing the employment allowance, with a further 0.3 billion going towards increasing an additional employment allowance for single parents.

According to the public broadcaster DR, the expectation was that this would increase the standard employment  allowance to 12.75 percent up to a maximum rebate of 53,600 kroner. 

How might this be further increased, according to Børsen? 

According to a report in the Børsen newspaper, the government now plans to set aside a further 1.75 billion kroner for tax reforms, of which nearly half — about 800 million kroner — will go towards a further increase to the employment allowance. 

The Danish Chamber of Commerce earlier this month released an analysis in which it argued that by raising removing all limits on the rebate for single parents and raising the maximum rebate for everone else by 20,300 kroner, the government could increase the labour supply by 4,850 people, more than double the 1,500 envisaged in the government agreement. 

According to the Børsen, the government estimates that its new extended allowance will increase the labour supply by 5,150 people.  

SHOW COMMENTS