Feb 16 • 21:02 UTC 🇮🇸 Iceland Visir

The Sugar Tax has the Most Impact on the Lowest Income Groups

The proposed sugar tax is expected to disproportionately affect lower-income individuals and is being scrutinized by various stakeholders including business associations.

The article discusses the implications of a proposed sugar tax in Iceland and its expected impact on lower-income groups. The CEO of the Icelandic Federation of Trade and Services, Benedikt S. Benediktsson, expresses concerns that the tax could impose significant burdens on businesses and consumers, particularly those with lower incomes. While some consumers have mixed feelings about the tax, the consensus seems to lean towards it being a potential financial strain on the most vulnerable populations.

Furthermore, the article reports that the Ministry of Health is evaluating the feasibility of introducing this tax on unhealthy products, which includes processed foods high in sugar. In addition, there are suggestions to reduce taxes on healthier food options and curb the marketing of unhealthy foods. These initiatives aim to improve public health but are met with skepticism by trade representatives like Benediktsson, who question the effectiveness and fairness of such measures on both consumers and businesses.

Overall, while the intended goal is to promote healthier eating habits and reduce sugar consumption in Iceland, the discussion reveals a tension between health initiatives and economic realities for businesses and low-income consumers. This highlights the need for careful consideration in policy-making that balances public health benefits with economic impacts, especially on the most disadvantaged groups in society.

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