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Food taxation in the Nordic Countries –
From fiscal to health motivated taxes – what can we
learn from the Norwegian exper...
FHI -
This public inquiry (NOU)was set up to conduct a
comprehensive assessment of the current
special taxes on chocolate ...
FHI -
Chocolate and confectionery tax
The special tax on chocolate and
sugar confectionery has existed
since 1922
Chocolat...
FHI -
The sugar taxes have been adjusted on
several occasions
As part of the budget settlement in the
autumn of 2017, the ...
FHI -
The EEA unites the EU Member States and
the three EEA EFTA States (Iceland,
Liechtenstein, and Norway) into an Inter...
FHI -FHI - 18.06.2019
Cross-border trade
Tax differences between Sweden and Norway and total cross border trade
FHI -
Chocolate and confectionery consumption in Norway;
kg/person/year
Hdir 2018
FHI -
Soft drink consumption in Norway; litre/person/year
Hdir 2018
FHI - 18.06.2019
Proportion of the population with a reported sugar
intake above 5 % and 10 % of their total energy intake...
FHI - 18.06.2019
FHI -
Consumption price index (CPI) for food groups 1998-
2015
FHI -
WHO Guideline –
Sugars intake for adults and children
Recommendations
WHO recommends a reduced intake of free sugars...
FHI -
Dietary goals:
Limit consumption of processed foods high in
fat, starches or sugars – including ‘fast foods’;
many p...
FHI -
WHAT IS ALREADY KNOWN ON THIS TOPIC
Studies have suggested an association between the use of non-sugar sweeteners an...
FHI -
Charges that increase the retail price by 20 % or
more lead to more than a proportional reduction in
the consumption...
FHI -FHI -
The WHO Country Capacity Survey, the Second Global Nutrition Policy Review and ongoing monitoring
through the G...
The Rise and Fall of the Danish Soft Drink Tax: An
observational study
Soft drink taxes in Denmark (DKK/liter) Average rep...
The Rise and Fall of the Danish Soft Drink Tax
Purchased quantity per capita per
month
Main findings:
• The average volume...
FHI -FHI -
At the third High-level Meeting of the United
Nations General Assembly on the Prevention
and Control of Non-com...
FHI - 18.06.2019
The Task Force on Fiscal Policy for Health
Bent Høie, Minister of Health and Care
FHI -
The committee members agreed that (if there is
to be) a tax on chocolate and sugar
confectionery and on non-alcoholi...
FHI -FHI -
The committee's majority believe that a health-based and differentiated fee should be
introduced for non-alcoho...
FHI -FHI -
Illegal financial support (ulovlig statsstøtte). Complaints have ben filed to the EFTA Surveillance
Authority (...
FHI -FHI -
The sugar consumption is high in Norway, as is the consumption of chocolate and sweets –
particularly among chi...
FHI -FHI -
The NOU is on a public hearing with a deadline of June 12, 2019
The government will present their future plans ...
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Food taxation in the Nordic Countires - From fiscal to health motivated taxes - what can we learn from the Norwegian experience. Knut-Inge Klepp.

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The Workshop of the PromoKids Network in Bergen 12 June 2019. Knut-Inge Klepp.

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Food taxation in the Nordic Countires - From fiscal to health motivated taxes - what can we learn from the Norwegian experience. Knut-Inge Klepp.

  1. 1. Food taxation in the Nordic Countries – From fiscal to health motivated taxes – what can we learn from the Norwegian experience Knut-Inge Klepp The Norwegian Institute of Public Health 2nd Workshop of the Nordic PromoKids Network, Bergen, June 12, 2019 18.06.2019
  2. 2. FHI - This public inquiry (NOU)was set up to conduct a comprehensive assessment of the current special taxes on chocolate and sugar confectionery and non-alcoholic beverages, including the health effect of the fees and the consequences for the industry and the tax authorities It was also asked to assess whether the fees can and should be designed so that they to a greater extent take into account health and nutritional concerns 18.06.2019 Special taxes on chocolate and sugar confectionery and non-alcoholic beverages
  3. 3. FHI - Chocolate and confectionery tax The special tax on chocolate and sugar confectionery has existed since 1922 Chocolate and sugar confectionery was seen as luxury products well suited for taxation It was also pointed to potential overuse of such products Tax on non-alcoholic beverages The tax on non-alcoholic beverages was introduced in 1924, then as a tax on carbonated beverages The fee was justified by the state's need for income, that the goods were not necessities and could be characterized as luxury goods The fee has been changed a number of times and extended to include non-carbonated beverages The tax includes beverages with added to sugar or sweeteners Drinks containing only natural sugar are not charged18.06.2019 Historical background
  4. 4. FHI - The sugar taxes have been adjusted on several occasions As part of the budget settlement in the autumn of 2017, the Storting decided to increase these special taxes As of January 1, 2018, the tax on chocolate and sugar confectionery was set up by 82.9 % (from NOK 20.19 per kg to NOK 36.92) This increase was reversed as of January 1, 2019 The tax on non-alcoholic beverages increased by 42.2 % (from NOK. 3.34 per liter for kr. 4.75) 18.06.2019 Tax increase as of 2018
  5. 5. FHI - The EEA unites the EU Member States and the three EEA EFTA States (Iceland, Liechtenstein, and Norway) into an Internal Market governed by the same basic rules These rules aim to enable goods, services, capital, and persons to move freely about the EEA in an open and competitive environment, a concept referred to as the four freedoms 18.06.2019 The European Economic Area (EEA)
  6. 6. FHI -FHI - 18.06.2019 Cross-border trade Tax differences between Sweden and Norway and total cross border trade
  7. 7. FHI - Chocolate and confectionery consumption in Norway; kg/person/year Hdir 2018
  8. 8. FHI - Soft drink consumption in Norway; litre/person/year Hdir 2018
  9. 9. FHI - 18.06.2019 Proportion of the population with a reported sugar intake above 5 % and 10 % of their total energy intake Over 5 E% tilsatt sukker Over 10 E% tilsatt sukker Kostholds- undersøkelse År Aldersgruppe Alle Gutter/ menn Jenter/ kvinner Alle Gutter/ menn Jenter/ kvinner Spekost 2 2007 12 mnd 26 28 24 9 9 8 Småbarnskost 2 2007 24 mnd 60 60 59 16 15 16 Ungkost 3 2016 4-åringer 77 77 78 32 30 33 Ungkost 3 2015 9-åringer 89 87 90 58 54 62 Ungkost 3 2015 13-åringer 87 86 88 57 55 59 Norkost 2010/2011 Voksne 60 57 63 23 24 23 Universitetet i Oslo; upubliserte data
  10. 10. FHI - 18.06.2019
  11. 11. FHI - Consumption price index (CPI) for food groups 1998- 2015
  12. 12. FHI - WHO Guideline – Sugars intake for adults and children Recommendations WHO recommends a reduced intake of free sugars throughout the lifecourse (strong recommendation) In both adults and children, WHO recommends reducing the intake of free sugars to less than 10% of total energy intake (strong recommendation) WHO suggests a further reduction of the intake of free sugars to below 5% of total energy intake (conditional recommendation) 18.06.2019
  13. 13. FHI - Dietary goals: Limit consumption of processed foods high in fat, starches or sugars – including ‘fast foods’; many pre-prepared dishes, snacks, bakery foods and desserts; and confectionery (candy) Do not consume sugar sweetened drinks. Drink mostly water and unsweetened drinks Strong evidence 18.06.2019 World Cancer Research Fund – Diet, Nutrition, Physical Activity and Cancer: a Global Perspective Limit ‘fast foods’ Limit sugar sweetened drinks WCRFI, 2018
  14. 14. FHI - WHAT IS ALREADY KNOWN ON THIS TOPIC Studies have suggested an association between the use of non-sugar sweeteners and health outcomes (such as body weight, diabetes, cancer, and oral health) However, evidence for health effects due to the use of non-sugar sweeteners is conflicting Existing reviews on non-sugar sweeteners and health outcomes have limitations in scope and currency WHAT THIS STUDY ADDS In this comprehensive systematic review, a broad range of health outcomes were investigated to determine a possible association with non-sugar sweetener use in a generally healthy population There was no compelling evidence to indicate important health benefits of non-sugar sweetener use on a range of health outcomes Potential harms from the consumption of non-sugar sweeteners could not be excluded 18.06.2019 Non-sugar sweeteners – systematic review of the evidence BMJ 2019;364:k4718
  15. 15. FHI - Charges that increase the retail price by 20 % or more lead to more than a proportional reduction in the consumption of sugary drinks and contribute to improved nutrition and reduced obesity, obesity and NCD (WHO, 2016) To reduce over-consumption of sugars and halt the epidemic of obesity and diabetes, countries need comprehensive action plans that combine taxation, restriction of marketing of sugary products to children, and education (WHO, 2017) Recommended taxes on sugary products
  16. 16. FHI -FHI - The WHO Country Capacity Survey, the Second Global Nutrition Policy Review and ongoing monitoring through the GINA database have tracked the status of implementation of recommendations from the Second International Conference on Nutrition and the Ending Childhood Obesity implementation plan: • 59 countries have established a tax on sugar-sweetened beverages • 46 countries have mandatory regulations on marketing to children • 55 countries have established front-of-pack labelling (eight of them with mandatory regulations) • 28 countries have regulations on the inappropriate marketing of complementary food • 87 countries have school food standards • 28 countries have banned food and drink vending machines in schools and • 27 countries are taking action to ban the use of industrially produced trans-fats 18.06.2019 Outcome of the Second International Conference on Nutrition Report by the Director-General
  17. 17. The Rise and Fall of the Danish Soft Drink Tax: An observational study Soft drink taxes in Denmark (DKK/liter) Average reported price per month Schmacker & Smed; upubliserte data; januar 2019
  18. 18. The Rise and Fall of the Danish Soft Drink Tax Purchased quantity per capita per month Main findings: • The average volume of taxed beverages purchased was 14.8 percent lower than the year before the tax increase (price elasticity of 1.15 on average) • Comparing the results for households living closer to the border with those that only have access to the border via a toll bridge we find a non-significant difference in responses which suggest that our main results are not driven by an increase in under-reporting due to cross-border shopping • One year after the tax repeal in January 2014 soft drink purchases are 30.1 percent larger than one year before the first tax cut in July 2013 (price elasticity of 1.23) Schmacker & Smed; upubliserte data; januar 2019
  19. 19. FHI -FHI - At the third High-level Meeting of the United Nations General Assembly on the Prevention and Control of Non-communicable Diseases (New York, September 2018), Heads of State and Government committed to, inter alia: promote and implement policy, legislative and regulatory measures, including fiscal measures as appropriate, aiming at minimizing the impact of the main risk factors for noncommunicable diseases, and promote healthy diets and lifestyles 18.06.2019 UN High Level Meeting 3 on NCDs in New York 27 September 2018 Statement from Prime Minister Solberg: “The WHO has identified the evidence- based interventions that are most effective for turning the tide. WHO recommends increase taxes on tobacco, alcohol and products of high sugar as cost-effective measures for combating NCDs. These are not always popular measures, I can underline to that, but they are necessary ones”
  20. 20. FHI - 18.06.2019 The Task Force on Fiscal Policy for Health Bent Høie, Minister of Health and Care
  21. 21. FHI - The committee members agreed that (if there is to be) a tax on chocolate and sugar confectionery and on non-alcoholic beverages, these should primarily have a health and not a fiscal motivation A health-based fee should be differentiated New fees should be notified to the EFTA Surveillance Authority (ESA) 18.06.2019 NOU report - conclusions
  22. 22. FHI -FHI - The committee's majority believe that a health-based and differentiated fee should be introduced for non-alcoholic beverages Two members (lawyers) believe that such a fee should only include non-alcoholic beverages that are added to sugar Four members (public health & health economy) believe that a health-based fee should also include non-alcoholic beverages with artificial sweeteners, but at a lower rate Four members representing the industry believe in principle that there should not be a tax on non-alcoholic beverages (alternatively a model predictable for the business sector, such as the Irish beverage fee) The Committee recommends that any new fees be notified to the EFTA Surveillance Authority (ESA) 18.06.2019 NOU report - conclusions
  23. 23. FHI -FHI - Illegal financial support (ulovlig statsstøtte). Complaints have ben filed to the EFTA Surveillance Authority (ESA). (Risk 10-year back payment) Unfair trade conditions and lead to increased cross-border trade – first of all to Sweden (including private internet import) Norwegian jobs are being threatened (both in retail and in production facilities) Complicated to limit and delimit what products that should be taxed Question the relevance of the international public health literature for a Norwegian setting Other policy measures, including voluntary public – private partnership and educational efforts, are more effective and appropriate 18.06.2019 Food industry/business perspective The Norwegian ‘sugar taxes’ represents:
  24. 24. FHI -FHI - The sugar consumption is high in Norway, as is the consumption of chocolate and sweets – particularly among children Reduced price on soft drinks and chocolate/sweets will lead to an increased consumption of these products – inconsistent with national and international recommendations The effectiveness of taxes as a measure for reducing the consumption of sugary products is well established – including their ability to reduce inequality in eating habits Artificially sweetened products could have a lower tax rate than products with added sugar 18.06.2019 Public Health Perspective
  25. 25. FHI -FHI - The NOU is on a public hearing with a deadline of June 12, 2019 The government will present their future plans regarding these taxes when presenting the national budget for 2020 in October 2019 The design of ‘new and health motivated’ taxes is expected to take quite some time, be contested by private sector, having to be notified to the EFTA Surveillance Authority (ESA), and probably end up in court! Thank you! 18.06.2019 Current status & way forward The report was submitted to the minister of finance on April 10, 2019

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