Onkelinx considers French-style soft drinks tax

Health minister Laurette Onkelinx is considering introducing a soda tax in Belgium, based on the French model, writes Tax News’ Ulrika Lomas. A tax on soft drinks rich in sugar and on diet drinks would serve not only to reduce the consumption of such beverages but also to generate much-needed additional revenues with which to finance health campaigns, Onkelinx argued. Defending the idea, the health minister alluded to the findings of an “alarming” study, linking the consumption even of diet drinks to an increased risk of diabetes, and pointed out that the French tax, applied across France since last year, has lowered the consumption of fizzy drinks. The Belgian industry federation of soft drinks accused the government of merely seeking new sources of revenue. Secretary-general David Marquenie insisted that the 3% drop in the consumption of such drinks recorded in France last year was not necessarily due to the levy but might have been weather-related. He highlighted the fact that Denmark has abandoned such taxes, abolishing its tax on saturated fat and now planning to remove the duties on drinks, as part of efforts to stimulate the economy. The president of the French-speaking union of dieticians, Serge Pieters, underlined his scepticism regarding the impact of a soda tax, stressing that individuals must learn to reduce their sugar intake. The fiscal measure alone is not an effective weapon to combat the problem, he said. He did suggest, however, that any income from the levy could be used to reduce the excise duties on water, lower VAT on fruit and vegetables and install water fountains.