• CTF releases docs showing a mountain of provincial government research and cabinet discussion paper on fat taxes
• Fat taxes have failed in other jurisdictions

The Canadian Taxpayers Federation (CTF) today released FOI documents showing the Manitoba government has conducted a pile of research on fat taxes. As the NDP will be discussing such a tax at their upcoming policy convention, the CTF urged the government to confirm their opposition to such a move; noting the measure has proven to be a failure in other jurisdictions.

Contained within the documents is evidence that suggest the Selinger government’s cabinet has considered introducing a “junk food tax” and a “Healthy Living Levy.” (P.83-84)

“It’s good that we haven’t seen the Selinger government introduce a cash grab on food,” added Colin Craig, CTF Prairie Director. “We hope they continue to avoid such a food cash grab as Manitobans are already taxed to the max. Research from other jurisdictions has shown fat taxes don’t work either.”

The CTF released a study on fat taxes in November 2013 that concluded such taxes do not work. Included in the study was information on how Denmark had introduced, and repealed, a fat tax as it proved to be highly unpopular and led to more cross-border shopping.

Thankfully some of the research obtained by the CTF included government staff notes pointing out some of the follies of fat taxes:

“Currently there is only, at best, weak evidence that junk food taxes would be effective in achieving public health goals of influencing food choices. Such taxes would certainly raise revenue.”                                                    – Staff Note (P.31)

“Most studies have considered the impact of tax rates of up to 30%. It has been shown, even with small taxes, that the effect would be regressive – that is, there would be a greater economic impact on lower income consumers.”   – Staff Note (P.31)

“A major problem confronting any food tax proposal is scientific uncertainty about the complex nature of relationships between diet and health. There is a danger in focusing on one individual nutrient without considering the whole diet and the particular characteristics of the individual consumer.”   - Discussion Paper – Draft P. 127 

“Companies complained that the tax was a bureaucratic nightmare, increasing administrative costs and putting jobs at risk, and consumers in Denmark were making shopping trips to Germany and Sweden to avoid the tax. In announcing the repeal of the fat tax, the Danish tax ministry said it had also cancelled plans to introduce in January a sugar tax.”   - Staff Note P. 132

To view the pile of documents – click here

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