site.btaMedical Community, Patient Organizations Support Tax on Unhealthy Foods; Industrial Association Objects

Medical Community, Patient Organizations Support Tax on Unhealthy Foods; Industrial Association Objects

Sofia, October 21 (BTA) - The whole medical community and patient organizations support the Public Health Tax Bill, Health Minister Peter Moskov said.

Тhe Public Health Tax Bill launched for public discussion by the Ministry of Health and the Ministry of Youth and Sports on Tuesday stipulates that four groups of products: those containing excessive salt, sugar, caffeine and taurine, and all foods containing trans fats will be taxed as from next year. The tax will be charged from EU or Bulgarian producers or distributors at the first sale down the chain or from
third-country companies upon import. The idea is to encourage people to eat and drink healthier products and producers to useless harmful ingredients in their foods.

Such tax was introduced in Hungary in 2011 and in 2013 the WorldHealth Organization conducted a study of the effect of this tax, which showed that the consumption of unhealthy foods has dropped by 27 per cent on average, Moskov said.

There should be clear information that the product contains slat, sugar, caffeine and trans fats and that it has been charged with a tax and this information should be placed at a conspicuous place onto the product. The fiscal measures, the awareness campaign and the change of the nutrition and sports regime in schools are the main pillars for a healthy generation,the Minister observed.

Products, such as bread, meat, cheese, butter and yellow cheese will not be charged, provided that they do not contain trans fats. Tax will be imposed on margarine and subproducts for frying and baking, provided that they contain trans fats, Moskov also said, adding that trans fats are to be blamed for thrombosis.

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The Bulgarian Industrial Association (BIA) insisted to call urgently the National Council for Tripartite Cooperation in order to discuss the proposal to introduce the so-called "unhealthy food tax", the Chamber said.

According to BIA, the proposed tax will increase the food costs of the groups with lowest incomes because, parallel to the hike of the prices of the unhealthy foods, the other foods will also appreciate. This will prompt inefficient adjustment of social payments and pensions, a higher budget deficit, higher poverty levels, growth of the grey economy and bankruptcies of companies.

BIA recalls that the raising of taxes and excise duties without reforms of the administration, the public costs and the regulations will prompt resistance of the legitimate business. In this context, the proposed changes will service the non-transparent public finances and public procurement procedures and legislation servicing narrow interests.