Support for Meat Tax – Study DVJ Insights & TAPP Coalition

TAPP Coalition, a non-profit foundation that focuses on fair prices and taxes to make the production and consumption of meat and dairy more sustainable, and DVJ Insights conducted a study to find out whether consumers support the EU Green Deal proposal. The Green Deal proposes to increase meat prices and reduce prices for vegetables and fruits, in order to make healthy and sustainable food the easiest, most affordable choice. The press release by TAPP Coalition can be found below.

MAJORITY WEST-EUROPEAN CONSUMERS SUPPORT INTELLIGENT MEAT TAX

70% of German, French, Dutch consumers support 0% VAT rate on vegetables and fruits and a higher VAT rate on meat

The EU Parliament started to amend the ‘Farm to Fork Strategy’ in February, with votes expected 3^rd of June. The Farm to Fork Strategy was published 20^th May 2020 and is the EU Green Deal for Food, proposed by Frans Timmermans. A meat tax proposal published 5th February 2020 in the EU Parliament has led to a new initiative of the EU Commission to admit that meat prices are too low, according to the Farm to Fork Strategy. A voluntary EU Code of Conduct should stop retailers to sell meat at too low prices, if not, legislation will start. In addition, the Farm to Fork Strategy wrote: “Tax incentives should also drive the transition to a sustainable food system and encourage consumers to choose sustainable and healthy diets. EU tax systems should aim to ensure that the price of different foods reflects their real costs in terms of use of finite natural resources, pollution, GHG emissions and other environmental externalities”. In other words: EU tax systems (ETS, VAT and import taxes) should reflect costs of GHG emissions of meat and dairy prices. Germany and the Netherlands now prepare a meat tax. In New Zealand, the government decided to include the meat and dairy sector in the ETS system for CO2-trade. Spain decided already in 2021 to increase VAT taxes on meat to 10% and reduce VAT taxes on vegetables and fruit to 4%.

Parliamentarians should know that consumers support the Green Deal proposal to increase meat prices and reduce prices for vegetables and fruits, to make healthy and sustainable food the easiest, most affordable choice. This was proven by a consumer survey held by DVJ Insights, commissioned by TAPP Coalition and Four Paws, showing that 88 percent of German, French and Dutch consumers are neutral or support a meat tax including environmental costs, if tax revenues are used to reduce VAT taxes on vegetables and fruit, support farmers on sustainability and animal welfare improvements and compensate low income groups. 80% of the German, 63% of the Dutch and 67% of the French participants are willing to pay a tax of at least 10 eurocents per 100 gram meat if revenues are used to pay farmers for improved animal welfare and CO2-reduction, and higher salaries for workers in slaughterhouses. Some 53% of the Germans also are willing to pay even more: at least 25 eurocents per 100 gram meat. The same holds for 39% of the French and 32% of the Dutch consumers. Surprisingly, voters of conservative or liberal parties in the three countries support such meat taxes even more, compared to voters of traditional left wing parties. In France for example, 70% of people voting for Macron’s political party ‘La Republic en Marche’ support a meat tax of 1 €/kg. Also 70% of people voting for the conservative party ‘Les Republicains’ support this tax, while ‘only’ 64% of the voters of the ‘Parti Socialiste’ support this meat tax proposal.

The EU Parliament discussed the EU Green Deal ‘Farm to Fork Strategy’ on January 25^th 2021, for which voting will be held in April and June (deadline for amendments was 2^nd February). In this Farm to Fork Strategy, the EU commission proposed to reduce VAT tariff on (organic) vegetables and fruits to 0%. The survey by DVJ Insights showed large support for this plan: a wide majority in Germany (72%), Netherlands (64%) and France (75%) agrees “to reduce VAT tariffs on (organic) fruits, vegetables and other plant-based protein products to 0%, as well as a shift of meat products and unhealthy sugary drinks from the reduced VAT tariff to the normal ‘high’ VAT tariff”. The consumer survey shows that the Farm to Fork Strategy has wide support, if political leaders in EU Member States decide greening the VAT system at EU level. 50% of consumers in the three countries want supermarkets to increase prices on meat (25-35%), charging a lower price (25-35% cheaper) for fruit, vegetables and other healthy / sustainable foods. The EU Commission proposal to introduce a carbon border adjustment mechanism (also on meat) is widely supported: 67% of Germans, 54% of Dutch and 72% of French consumers support it, which protects EU farmers and the climate. 

The full press release can be found on the TAPP Coalition website.