Could the Next Sin Tax in Europe Be On Red Meat?

Meat could be a target for higher taxes given criticism of the industry’s role in climate change, deforestation and animal cruelty, according to a report by Fitch Solutions Macro Research.

The idea is still in its infancy and faces a lot of opposition from farming groups, but it’s emerging as a trend in Western Europe, said the research group. If taxes gain traction, it could encourage more people to switch to poultry or plant-based protein and help drive the popularity of meat substitutes.

“The global rise of sugar taxes makes it easy to envisage a similar wave of regulatory measures targeting the meat industry,” Fitch Solutions said. However, “it is highly unlikely that a tax would be implemented anytime soon in the United States or Brazil.”

In Germany, some politicians have proposed raising the sales tax on meat products to fund better livestock living conditions. A poll for the Funke media group showed a majority of Germans, or 56.4 percent, backed the measure, with more than a third calling it “very positive” and some 82 percent of voters for the environmentalist Greens in favor. Similar proposals have been introduced in Denmark and Sweden since 2016, Fitch Solutions said.

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SOURCE: Accounting Today