Netherlands: Lower VAT and therefore higher fruit and vegetable consumption
Fruits
Vegetables
Netherlands
Published Jan 19, 2022
Tridge summary
It sounds simple, and the intention behind the proposed VAT reduction on fruit and vegetables is commendable, but as is often said: if it sounds too good to be true, then it probably is, according to Rabobank. In theory it works like a bus. Lower the price of fruit and vegetables and consumers will buy more of these products and hopefully consume more.
Original content
It sounds simple, and the intention behind the proposed VAT reduction on fruit and vegetables is commendable, but as is often said: if it sounds too good to be true, it probably is, according to Rabobank. In theory it works like a bus. Lower the price of fruit and vegetables and consumers will buy more of these products and hopefully consume more. This is much needed, because the Nutrition Center recommends eating 250 grams of vegetables and 200 grams of fruit daily. With a consumption of approximately 130 grams of vegetables and 113 grams of fruit per day, the average Dutch person is far from achieving the objectives of the Nutrition Center. If the government actually reduces the sales tax on fruit and vegetables to 0 percent, Dutch consumers will jointly have to spend just under 500 million euros less on groceries. Various studies have shown that fruit and vegetables have an average price elasticity of about 0.5-0.6. That would mean that roughly half of that saving of 500 ...
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