Financial Advice UK - Tax News - Taxing unhealthy foods 'could save lives'

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Tax News - Last Updated Thursday 12th July 2007

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Taxing unhealthy foods 'could save lives'

Thursday 12th July 2007

Adding value-added tax (VAT) to unhealthy foodstuffs could improve Britain's health, medical experts have claimed.

Researchers from Oxford and Nottingham universities have published a study in today's Journal of Epidemiology and Community Health which they claim shows taxing unhealthy foodstuffs could reduce the number of deaths from heart disease and strokes in Britain.

VAT of 17.5 per cent is already applied to some foodstuffs, including ice cream, confectionery and savoury snacks.

The study claims that adding it to products which are high in fat, salt and sugar for maximum health effect would prevent up to 3,200 heart disease and stroke-related deaths every year, equivalent to 1.7 per cent of the total.

"Our results suggest that, although the percentage changes in the incidence of cardiovascular disease are small, the actual number of lives saved could be substantial because of the high incidence of cardiovascular disease in the UK," the authors write.

"Fat taxes would not eliminate dietary-related diseases, but could be one of several tools used to achieve that goal."

Expanding VAT would cost consumers, however, as the average weekly food bill would rise by 4.6 per cent.

The researchers warn that a half-hearted attempt to implement taxation on unhealthy foods could have a negative effect.

Only taxing products which are high in unsaturated fats would result in an overall increase in salt intake. This would potentially raise the number of deaths from heart attacks and strokes, they say.