Can Targeted Food Taxes And Subsidies Improve The Diet? Distributional Effects Among Income Groups
This paper analyzes distributional effects of revenue-neutral tax reforms aimed at improving dietary quality and encouraging healthier grain consumption. Using data on household grain purchases, the authors analyze both the impact on dietary quality and the tax incidence among income groups of VAT reforms and excise duty reforms. The VAT reforms include subsidies of healthy products (products labelled with the Swedish National Food Administration's healthy symbol) funded by increased VAT on 'Less healthy' products. The excise duty reforms contain a subsidy of fibre content, funded by excise duties on either added sugar or saturated fat.