We finally seem to know why the Greek Development Ministry insists on abolishing the ‘fresh milk’ tag under the pretext of “decreasing the milk prices”. Because the milk prices will skyrocket as the debt-ridden and jerks-hit country will impose the fat tax on milk.
“An 8%-10% tax on all products with high fat such as butter, cream, milk, cheese, pizza, meat chocolates, snacks, ketchup, mayonnaise,” Sunday newspaper Proto Thema reported.
Allegedly this demand has been recently posed the Greece’s lenders, the Troika.
Obesity spreads like wild fire among Greek seniors with 500 euro pension per month…
Does the Troika the health of Greek population in mind? Do the EU, the IMF and the ECB want to fight Greeks’ obesity? Or right on the contrary, the Troika is concerned about the unhealthy in content but cheap in purchase eating habits of the austerity-ridden Greeks. That Greeks may die before they pay back their loans and bailouts. Although with €3 per 200gr we cannot say that butter is cheap in Greece.
“The technical team of the Troika suggested last week to a top executive of the Finance Ministry to calculate how much revenue would flow to public funds if the fat tax imposed in foods with a high content of saturated fats (butter , cream , milk , cheese , pizza , meat , chocolates , snacks , ketchup , mayonnaise ) .
The proposal is to impose a tax rate ranging from 8% to 10 % and will be added to the products with 13% VAT.
According to the report from the imposition of tax the government can collect from 640 to 800 million € per year.” (via newsit.gr)
“The fat tax has already been imposed in Denmark, France and Hungary,” the newspaper notes. “With doubtful economic and health success,” I would add.
In October 2011, Denmark introduced a fat tax on butter, milk, cheese, pizza, meat, oil and processed food if the item contains more than 2.3% saturated fat. However, in November 2012, the Danish Tax Ministry announced it would abolish the fat tax, stating that it failed to change Danes’ eating habits, it had encouraged cross border trading, put Danish jobs at risk and had been a bureaucratic nightmare for producers and outlets. The proposed sugar tax plans were also scrapped.
Mette Gjerskov, the Danish minister of food, agriculture and fisheries, stated that “the fat tax is one of the most criticized we had in a long time. Now we have to try to improve public health by other means.” Although the tax resulted in an additional $216 million in revenue, it also led to numerous complaints from Danish retailers that their customers were taking their business to other countries, such as Sweden and Germany, to take advantage of their lower prices.” (wikipedia)
I suppose, the next food tax aiming to make state revenues flow will be the sugar tax?
But much to my knowledge jerks will keep on running tax free because if a jerks-tax would be impose Greece will definitely get rid of its debt in zero time and this is not something the Troika wants.
Milk prices increased ahead of …milk prices decreases
The prosecutor has launched an investigation in the sudden milk price increases ahead of the planned milk price decreases.
Greek media report on Sunday that a price increase of fresh and high pasteurization milk products has been observed during the last days in the shelves of supermarkets.
“According to data from the Price Observatory of Development Ministry, while the price of fresh milk of one of industry leaders was at €1.18/liter on January 16th 2014, today is sold for €1.24/liter. This price has been observed in four major supermarket chains .
Increases were observed in high-temperature pasteurized milk products of at least two companies , and in one case the milk sold today at a price of €1.65/liter versus €1.60/liter on January 16, 2014 (3.1% increase). In some cases, a milk product sold at €1.64/liter is now sold for €1.70/liter (3.65 % increase ) .
Μilk producers but also Deputy Minister of Rural Development Maximos Charakopoulos have recently pointed out at some “strange, unreasonable and artificial price increases in milk.” They expressed suspicion that the milk industry increased their prices now, so that when the milk prices will drop with the “fresh milk duration legislation” they will suffer no losses.
The milk industry justifies the price increases with ‘the high energy cost and the cost of raw material.In other words , they argue that prices artificially increased in order to support the arguments of the Ministry of Development, as well as stress in the same period have increased producer prices .The dairies on their pay increases to “high energy costs, and the cost of raw material.”Greek Milk Organisation: the average producer price for cow’s milk increased during the period June – November at 2.31 % .Greek Statistics Authority (ELSTA): the price of fresh milk increased by 3.5% over the period December 2012-December 2013. And thus in times of negative inflation.” (via News247.gr)
I remember that there was a price increase from €1/liter to €1.18/liter, due to Value Added Tax increases, hm… two years ago? I can also recall that seven years ago, the price for one liter milk was €2. I certainly paid €1.24 on Saturday for a liter of milk of the same brand I always buy.
PS the same more or less has happened with the medicine.