Health Taxes from an EU Perspective

This study contributes to the growing body of evidence on the implementation of taxes on high in fat, salt and sugar (HFSS) products in EU Member States. It provides a foundation for initial discussions with EU Member States on advancing HFSS taxes in general and particularly sugar-sweetened beverages (SSB) taxes within a European framework. In contrast to several earlier studies carried out at EU level, this study is based on quantitative analyses. The study explores the effects of existing HFSS taxes in EU Member States from 2009 to 2021, and includes in-depth case studies from Belgium, Denmark, France and Poland. Effects covered include cost pass-through, product reformulation, price elasticity, changes in consumption behaviour, product substitution, affordability, cross-border shopping and tax revenue generation. The study also examines the potential and feasibility of establishing an EU harmonised tax framework for HFSS products and explores whether an EU minimum level of harmonisation for a SSB tax would add value. A simulation of three potential scenarios highlights the change in consumption and the implied reduction in average daily sugar intake. Such a minimum tax would translate into positive health effects, such as a reduction in BMI and in the incidence of related diseases such as ischemic heart diseases and diabetes.