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‘Fat Tax’ could generate €188 million a year

Leading economists were told at the weekend about a study that details a separate tax for sa...
Newstalk
Newstalk

14.43 16 Oct 2012


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‘Fat Tax’ could generate €188...

‘Fat Tax’ could generate €188 million a year

Newstalk
Newstalk

14.43 16 Oct 2012


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Leading economists were told at the weekend about a study that details a separate tax for saturated fat, added sugar and salt, and concludes that a levy on all three could generate €188 million a year for the exchequer.

Authors Maria Murray of Trinity College Dublin and Micheál Collins of the Nevin Economic Research Institute told the gathering including economists attached to government departments that the direct effect on consumers would be quite small. But it could lead suppliers to reduce fat and added sugar and salt in products.

The cash generated could be used for health promotion campaigns. The economists’ warning to Government was: “There will be no effect other than revenue unless you spend the revenue on generating change.”

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The tax on saturated fat would cost consumers an average of 93 cent a week, while added sugar would add €1.10 a week to weekly shopping costs. And the levy for added salt would be a humble 15 cent a week. A tax on saturated fat alone could generate €79.91 million, while taxing added sugar could be worth up to €95.1 million with a salt tax yielding €13.08 million.

For individual consumers it would mean a 5 cent increase on a pack of butter, 3 cent on a half kilo of cheddar cheese, 3 cent on a chocolate bar and 5 cent on a two-litre bottle of cola.


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