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Possible tax on sugar


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Why?

 

 

I said that "Sooner or later there is almost inevitably going to be a very significant VAT reduction". I'll stand by that. It's only going in one direction. I think that we can expect to see it move towards 15% over time and that on some goods it will gradually be abolished.

 

VAT is an unpopular tax which is closely linked to the UK's membership of the EU. Pro Brexit Conservatives correctly argued during the run up to the referendum that it was only the UK's membership of the EU which prevented the abolition of VAT in key areas (eg heating fuel, building work etc) and its reduction in others.

 

There is also the fact that with borrowing rates close to zero (or below in some circumstances), VAT will be the obvious popular choice if the govt decides that it wants to create economic stimulus. Also consider that monetary policy is decided by the BOE - therefore the only control that the govt has is via fiscal policy.

Edited by pongo
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A bit rich to claim innovative credit for this when we really have little choice. The UK is doing it and charging it to the supply chain so we have two options: Either we do nothing so the retail pric

Juan Watterson said: that such a move would raise government revenue.   Got to pay for the Govt excesses somehow. Not so bothered about the health benefits as justification ,though. I reckon this l

It's what people say when they've never had a proper job.

VAT income won't ever disappear. It'll simply reappear in a different form.

 

Also, the doom mongers were also going on about UK Corporation Tax and massive reductions.

 

It's more nonsense. The only way those things can change is with the tax payer absorbing those changes. I.e paying more tax.

 

It can't happen.

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Also, the doom mongers were also going on about UK Corporation Tax and massive reductions.

UK corporation tax is likely to be significantly reduced over time (the PM signalled this clearly in her speech to the CBI). Why would you see that as "doom-mongering"? It is likely to be very good news for the British economy in general.

 

VAT rates are also only going in one direction.

Edited by pongo
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Well, Watterson hits the population's panic button for his proposed grab. We have an obesity epidemic. Plebs eating cheap food apparently, amongst other things.

 

What a prick.

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Brilliant idea Mr Watterson. Manufactures will turn to a more healthy option ie artificial sweeteners.

 

S read this Juan www.foodmatters.com/article/is-artificial-sweetener-poisoning-you or any other article about the subject.

 

Better education is surely the answer, not a tax.

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Tynpotwald loves the idea, and it will be mirrored here once UK legislation is enacted. Apparently they talked this over with HMRC as regards tax sharing. This has nothing to do with obesity and diets but everything to do with the government coffers. I'm surprised Watterson tabled the motion, thought it would have been that Government Stooge David Ashford tabling it.

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Better education is surely the answer, not a tax.

Possibly but who are you going to educate? The manufacturers of cheap shite food? They are the ones who are loading us up on this as sugar is cheap and produces customers who keep coming back for more as they are addicts. I know, I am one.

 

Type 2 diabetes incidence is reaching epidemic proportions with catastrophic health implications. Taxation seems the only way.

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Of course it's about the money, but it's one of those that it would be difficult to avoid when the UK implements it. It will be levied in the UK on producers and importers, and pretty much all of our supplies come through the UK supply chain. So what do you do? Set up an entirely different tax free regime with every producer just for the miniscule quantity of product that finds its way to the Isle of Man? One that discriminates between product supplied (for instance) to Tesco UK stores and Tesco IoM store? Etc, etc.

 

https://www.ifs.org.uk/uploads/budgets/budget2016/budget2016_ks.pdf

 

And there they are in Tynwald pontificating about obesity as if they can really make this decision for the Island. I would have a lot more respect if the Treasury Minister had stood up and said. "Look. The UK is introducing a soft drinks duty via the supply chain. Our people will pay it whatever we do. So to avoid missing out altogether we are going to negotiate its inclusion in shared duties so that we get the benefit. Of course we could do with the money and will be content to bank it." End of story. No health debate.

Edited by woolley
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I would suggest taxing the consumers for purchasing food is not the answer here to solve the obesity problem, only to solve the goverment must get more money to fund its bloat problem.

 

There is an awful suger added into many prepackaged foods. What is needed is a combination of education (although awareness of this issue is much better than it has been), and pressure on large food manufacturers to cut suger content in food stuffs that do not require it. Also possibly charges for health care for those grossly overweight.

 

the IOM has literally no sway over major food manufacturers so unless the UK bring in the law there will be no incentive for them to improve thier products. At a guess I think the result of the tax would be a cost of living rise (already a problem over here) and a little change in peoples eating habits. It could also badly effect those jobs in confection industry over here. It is also an unfair tax in so far as it effects the rich and poor the same. In fact I think there is some evidence that the poor tend to buy more of the sugar rich food so it could be seen as a tax more effecting them.

 

Healthier food sometimes comes at a price premium so any tax on sugar would need to bought in hand in hand with incentives to buy healthy. Then possibly we would see a change in habits.

 

This government intervention in our lives is a sad fact of modern life. Are we no longer capable of deciding things for ourselves. As i mentioned at the start possibly a far fairer way of taxing obesity is to tax healthcare for those who are fat (unless there is a specific medical condition that you are so). Then you target only those who chose to overindulge not those who just fancy the odd treat.

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