Meat tax' could have significant impact on environmental footprint, study finds

"The environmental impacts of meat consumption could be rapidly and cheaply reduced if governments applied full VAT on products such as beef, pork, lamb and chicken, a study has shown. Depending on how the additional tax revenues were redistributed, such a change could cost households as little as 26 (23) a year, while cutting ecological destruction by between 3% and 6%, the paper found."

"Animal-based products have the biggest share of the EU's ecological footprint related to household diet, which is responsible for almost a quarter of greenhouse gas emissions, more than half of biodiversity loss and phosphorus pollution, and almost three-quarters of water consumption. Despite this, 22 of the 27 EU member states levy a reduced tax rate on meat purchases, compared with the general level of VAT. In effect this price signal screens citizens from the environmental and social costs of their consumption."

"The new study by the Potsdam Institute for Climate Impact Research calculated some of those hidden costs and examined how two possible policy reforms full VAT levies or a carbon price on food could affect prices, consumption levels, environmental impacts and costs. Published in the journal Nature Food on Tuesday, the paper found that the global environmental footprint of meat was substantially higher than plant-based foods in terms of climate impact, biodiversity loss, land use and pollution. The only exception was water use."

Applying full VAT to beef, pork, lamb and chicken could rapidly and cheaply reduce environmental impacts. Depending on how additional tax revenues are redistributed, the change could cost households as little as 26 (23) a year while cutting ecological destruction by 3–6%. Animal-based products contribute the largest share of the EU household-diet ecological footprint and are responsible for almost a quarter of greenhouse gas emissions, more than half of biodiversity loss and phosphorus pollution, and almost three-quarters of water consumption. Twenty-two of 27 EU states levy reduced VAT rates on meat. Ireland applies the largest meat tax break at zero percent versus a 23% general VAT, and raw meat in the UK is zero-rated while cooked meat in restaurants faces the 20% standard rate.

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