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More Tax on Petrol to Reduce Obesity is Ridiculous

More Tax on Petrol to Reduce Obesity is Ridiculous

The Taxpayers’ Union is labelling calls for higher taxes on petrol and plain packaging for fatty food and drink as ridiculous. Responding tocomments by Dr Mike Lee and Associate Professor Nick Wilson, Jordan Williams, Executive Director of the Taxpayers’ Union says:

“Calls for increased petrol taxes and new fat taxes are based on activist science not evidence. For example, Denmark’s tax on saturated fat introduced in 2011 was an economic disaster and lead to an estimated 1,300 job losses. The Danish tax was abandoned 15 months later and did little, if anything, to reduce harmful consumption.”

“There is no doubt that we have an obesity problem in New Zealand but the evidence is that taxing an inelastic product doesn't affect the consumption of those over indulging. Tap water is free, but people still choose to pay for bottled water.”

"Calls for plain packaging of sugary drinks are particularly concerning. In Australia, where plain packaging has been introduced for tobacco products, consumption has actually increased."

"It is ridiculous to suggest that charging Kiwi families more for a tank of gas and can of coke this Queen’s Birthday weekend will reduce obesity,” concludes Williams.

ENDS

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