The sugar tax brings in 500 million less than the government counted on

Sugar TaxSugar lumps. Photo: pixabay.com

The chocolate and sugar tax will probably yield less than NOK 500 million in government revenue than the government had expected according to NHO Food and Beverage.

 

For 2018, revenue from the tax was initially estimated at NOK 5.6 billion wrote Dagens Næringsliv (DN) newspaper. But during the first six months of the year, revenues have only been 40% of this.

The fee was decided in last year’s budget negotiations, with an increase of 83% by 2018. CEO Petter Haas Brubakk of NHO Food and Beverage asked why have a sugar fee that damages Norwegian competitiveness when the state does not receive the income expected.

“Tax revenues will be higher than in 2017, but far from as high as politicians budgeted with,” said Brubakk to DN.

When, in 2017, the target of 3.3 billion kroner was reached in income from sugar and soft drinks, more than 50% was earned during the first six months of the year. Nevertheless, NHO’s concern is not shared by the Kristelig Folkeparti’s (Christian People’s Party KrF) spokesman, Kjell Ingolf Ropstad, who supported the government’s budget in an agreement for the current year.

“If the reason for the fall in revenue and tax revenue is that people buy less candy and soda, there is a great development, good for public health and obesity and diabetes,” he told the newspaper.

 

© NTB scanpix / #Norway Today

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