A proposed ‘sin tax’ (a tax on 'unhealthy' foods) on foods and beverages by the World Health Organisation (WHO), could cost an average Irish family an extra €607 a year. 

 

The study conducted by the UK’s Institute of Economic Affairs (IEA) warned that the potential price increase could target those who have a smaller income.  

 

According to the IEA, a meeting was organised by billionaire Michael Bloomberg and the World Health Organisation (WHO).

 

Reportedly, they will give recommendations to global governments to introduce a ‘sin tax’ on food and drink that they deem to be unhealthy.

 

 

In a statement, Christopher Snowdon, Head of Lifestyle Economics at the Institute of Economic Affairs, said:

 

“Taxing the groceries of ordinary families will only succeed in making them poorer, when all the credible evidence shows that the best way to improve health is to make people richer.”

 

The sin taxes would target foods high in fat, sugar or salt.

 

The WHO definition of unhealthy food includes products such as breakfast cereals, yogurts, bread, soup and sliced ham.

 

 

According to the study, the World Health Organisation suggested sugar taxes at 20 percent "can lead to a reduction in consumption of around 20%, thus preventing obesity and diabetes."

 

However, the IEA researchers disputed the claim saying "there is no evidence that obesity rates have been affected by such taxes to date".

 

According to the research, the additional taxes that Irish households could generate €1 billion annually in overall consumer costs. 

 

When collecting the data, a typical family was defined as two children and two adults.

 


 

The WHO ambassador Michael Bloomberg was made Co-Chair on Task Force on Fiscal Health.

 

The task force was established to examine the evidence on “excise tax policy for health.”

 

They also make recommendations on how countries can best introduce tax policies to improve health benefits for their citizens, whilst bringing in “additional revenue.”

 

 

On the topic of taxation of products, they stated: 

 

“Existing evidence indicates that using taxation to raise the price of products which may have negative health impacts is one of the most effective ways to reduce their use.”

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