Meat and milk too cheap?

Greenpeace calls for an increase in VAT

Created: 01/02/2022, 3:44 PM

From: Felix Durach

The environmental protection organization Greenpeace has spoken out in favor of a VAT increase on animal products.

For climate-friendly consumption.

Hamburg - Are the prices for animal products such as meat and milk in Germany too low?

Just a few days ago, Agriculture Minister Cem Özdemir (Greens) spoke out against the dumping prices for which some meat is offered in German discounters and supermarkets.

According to the Green politician, meat should not become a luxury good, but farmers and employees in slaughterhouses should also be fairly rewarded.

At the beginning of the new year, the environmental organization Greenpeace in Germany is again speaking out in favor of a different pricing policy for animal products.

The organization's approach is based on the taxation of food.

The value added tax for meat, milk, cheese and the like should be increased, while the value added tax of fruit and vegetables could in turn be reduced.

Greenpeace calls for a VAT increase on meat and milk

"The new federal government should adjust the value added tax for meat and dairy products to the regular rate of 19 percent", so the proposal of Greenpeace. 19 percent is the normal VAT rate in Germany. However, staple foods are subject to a VAT rate of just seven percent - as is currently the case with most foods. In the case of fruit and vegetables, the environmental organization has even suggested that VAT should be dispensed with entirely.

"This would relieve consumers and create incentives for more environmentally friendly and climate-friendly consumption of plant-based foods," explains Greenpeace agricultural expert Matthias Lambrecht to the Funke media group.

The tax increases would also make it possible to implement targeted subsidies for farmers, which are intended to improve the keeping conditions for livestock.

The tax burden could be redistributed to consumers who consume meat and dairy products.

Meat and milk too cheap?

Greenpeace wants to include climate damage in the price

 “The consumption of meat and dairy products in Germany causes environmental and climate damage amounting to around 6 billion euros a year.

However, the real costs are not reflected in the price, ”said Lambrecht in his explanation.

Currently, the consumption of animal products would still be subsidized by around 5 billion euros per year through the reduced VAT.

Greenpeace is not about telling citizens what to eat, but about reintroducing the polluter pays principle.

The market would currently fail at this point, explains Lambrecht.