Denmark's Economic Savior: Cheaper Soda

Nation is scrapping its soda tax to encourage spending

By Mark Russell,  Newser Staff

Posted Apr 27, 2013 5:10 PM CDT

(Newser) – It's a policy that would make New York Mayor Michael Bloomberg gag. Over in Denmark, politicians are repealing their country's tax on sodas (and beer), in an effort to give their struggling economy some fizz, reports Der Spiegel. The soda tax will be cut in half in July, then eliminated altogether next year. No reports on how much soda the Danes drink, but Denmark's finance minister said cutting the soda tax would provide a "powerful growth spurt" to the economy.

Denmark instituted the soda tax, along with a tax on saturated fats, to promote healthy living. But with a tax of 52 cents for a 1.5-liter bottle, Danes have been traveling across the border to Germany to buy much of their soda. With their economy slowing down, Danish politicians want that money to stay at home. Oh, and that saturated fat tax? It was struck down last month, in part to protect jobs.

Denmark instituted a soda tax to encourage healthy eating, but now politicians say they would rather have the money.
Denmark instituted a soda tax to encourage healthy eating, but now politicians say they would rather have the money.   (Shutterstock)
Denmark introduced a soda tax to encourage healthy living, but not politicians say they would rather have the spending.
Denmark introduced a soda tax to encourage healthy living, but not politicians say they would rather have the spending.   (Shutterstock)
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