Research shows that a sugar tax would be very effective and lucrative

A tax on candy and other products containing excessive amounts of sugar would be "very effective" and could prove quite lucrative, according to a study by Ecorys. The organization carried out research on behalf of the Ministries of Finance and Health, with a goal of learing more about the impact of a theoretical wide-ranging sugar tax. If a sugar tax were implemented improperly, it could lead to multiple lawsuits, the study found.

A tax on products with more than six percent sugar could theoretically lower the risk of diabetes. The tax would effectively increase the number of healthy years for the families who eat the most sugar per person. Specifically, this would impact those whose sugar consumption is higher than 80 percent of all families in the Netherlands.

In addition, hundreds of millions of euros will be saved on healthcare costs related to sugar consumption. The tax would also mean that people would live longer on average, which would result in more money being spent on elderly care. On the other hand, productivity gains would result from fewer sick calls and medically unfit work declarations due to a healthier lifestyle.

The researchers added that the tax would provide around a billion euros to government coffers. They believe that supermarkets will earn less due to the tax as people choose other options. According to calculations, they would lose around 26 to 29 million euros.

The researcher's proposal is to gradually tax products containing six percent sugar or more. The tax would increase when the product contains more sugar. According to the study, the sugar tax is legally sustainable as a consumption tax. This does not apply to an increased value added tax rate.

It is essential to clearly define which products are subject to additional tax and which are not. The limit is "broadly based on the Wheel of Five," a specific guideline from the Nutrition Center. The tax should be limited to "products that require a nutrition label" to prevent fruit from being taxed.

The ministers who sent the report to the Tweede Kamer, the lower house of Dutch parliament, said that a political decision should be made by the next Cabinet. The Tweede Kamer also agreed with this.