Citing the loss of millions of euros, the Danish government is reportedly abandoning its 80-year tax on soft drinks because consumers are crossing the border to shop in Germany instead.
“This decision is the result of concerted efforts to highlight the negative impact of the tax,” said Niels Hald, secretary general of the Danish soft drinks association, Bryggeriforeningen. “In taking this step the Danish government acknowledged the regressive nature of the tax, its negative impact on regional jobs close to the borders and the adverse environmental consequences of border trade.”
Removal of the tax will reportedly take place in two stages, with a 50-percent reduction as of July 1, 2013, and full elimination as of January 1, 2014. The decision comes months after the Danish government repealed a similar tax on foods with high concentrations of saturated fat and stopped a proposed sugar tax last year. See UNESDA News Release, April 22, 2013; euvoice.eu, April 24, 2013.