NEW FOOD TAX COULD COST US €600 A YEAR

Popular everyday items facing ‘unhealthy’ levy

HOUSEHOLDS could be €600 a year out of pocket if a new “sin tax” comes into force.

The move is to promote healthier eating but leaves everyday items such as coffee, yogurts or sliced ham facing a 20% tax.

Chris Snowdon at the Institute of Economic Affairs hit out at the levy and said: “Taxing the groceries of ordinary families will only succeed in making them poorer, when all the credible evidence shows the best way to improve health is to make people richer.”

It comes after a sugar tax on fizzy drinks earlier this month saw the price of a can of Coke, Pepsi or other similar beverage go up 10c.

On the back of this World Health Organisation officials are meeting at the healthy eating summit in Switzerland this weekend.

But experts believe the less well-off will be hit disproportionately hard by any proposed hikes.

The IEA’S head of lifestyle economics Mr Snowdon said: “The meeting this weekend might be deliberately behind closed doors, but we know what it’s about.

“It is a planning session organised by the richest of the rich for a global assault on the poor.”

He also hit out at Mayor of New York Michael Bloomberg who backs the initiative and is attending the summit.

Mr Snowden added: “Billionaire Mike Bloomberg seems determined to use his twilight years conducting a warped social experiment to make poor people behave better.”

Analysis by the leading economist shows a 20% tax on the food and drinks the WHO considers unhealthy would cost a typical Irish family €606 extra per year.

While ordinary households would be out of pocket it is estimated the Exchequer will be potentially licking its lips at the prospect of another €1billion a year in its coffers.

The sugar tax on fizzy drinks is also set to bring in €40million a year for the taxman. However, the effects of a “sin tax” would be more widespread than the levy on beverages. It would hit households hard as the WHO’S definition of unhealthy food arbitrarily defines food and drink deemed high in fat, sugar, salt or calories.

This could mean tax rises for consumers of sweetened milk drinks, breakfast cereals, confectionary, baked goods, yoghurts, crisps, bread, soup and lunchbox staples such as sliced ham.

The move follows calls from campaigners including TV chef Jamie Oliver for sugar taxes to be extended to milkshakes, coffee and food.

20% How much tax could be on food such as cereal, ham, crisps and yogurt

IRELAND’S sugar tax passed into law without much hullabaloo but it seems to have caught the attention of the bigwigs at the World Health Organisation.

The opportunity to up the ante and hit us in the pocket for all the guilty pleasures we eat or drink is now being considered.

Economists estimate this would cost the average Irish family more than €600 a year.

It’s alright for billionaire Mike Bloomberg to back such an initiative with his WHO buddies – he can afford whatever he wants to eat.

Let’s pray they keep their eye on what matters here and get us through the other health crises and leave eyeing up our treats for another day.