Market and financial analyst Fitch Solutions said a cross-party coalition of German politicians proposed increasing the value added tax on meat, considered a staple food, from 7% to 19%.
Similar meat tax proposals have been suggested in Denmark and Sweden to reduce consumption for what officials consider health, environmental and ethical concerns.
“A meat tax could therefore emerge as a policy sibling to the sugar tax, supported on the basis that meat does play a role in a balanced diet but over-consumption is a public health issue deserving of government action, in the same way as sugar.”
More than 35 countries now tax sugar.
Last week Goldsmiths College, University of London, banned the sale of beef on campus, is phasing out single-use plastics and installing more solar panels because of climate change concerns.
“Sustainability has emerged as a hot topic for governments, industry and consumers and we believe these environmental considerations lend further weight to the idea of a meat tax.”
Ethical considerations are playing an increasing role in decisions by consumers which the report says makes a meat tax popular for decision makers.
While a higher tax will moderate the consumption of meat, the Fitch report says supermarket competition, especially in Western Europe, keeps meat prices low so any tax will have to be significant to change buying patterns.
The advent of plant-based protein products will make meat-free diets easier and less restrictive but the report warns any meat tax will face stiff opposition and is highly unlikely in markets such as the United States or Brazil.
“Even in Germany, where a meat tax has been proposed, we expect to see significant industry lobbying given that the country is the fourth largest producer of red meat globally.”
Pork, beef and veal production is projected to reach 6.5 million tonnes this year and the country’s total estimated agribusiness market value is NZ$70.4 billion.
