Politicians are proposing that taxes on plant-based milks be reduced to the same as dairy products – but will the government listen?
Two German MPs are urging the government to slash the hefty tax on plant-based milks.
Currently, non-dairy milks are subjected to a 19 per cent central consumption tax, whereas dairy only carries a seven per cent VAT.
Tim Klüssendorf of the SPD party proposed lowering the plant-milk levy to seven per cent to reach price parity with dairy. This comes ahead of the country’s annual tax law that takes place on January 1, 2024.
Tax on plant-based milks
Klüssendorf’s plan has been backed by The Greens’ Bruno Hönel.
He told German press: “With the change in eating habits in recent years and decades, plant-based milk has become an everyday alternative to cow’s milk for many.”
Hönel added that non-dairy milks are also ‘more climate-friendly’ than dairy
Tim Klüssendorf of the SPD party has proposed lowering the plant-milk levy to seven per cent to reach price parity with dairy. Photo © Mickis Fotowelt via Adobe Stock
An ‘outdated’ system
Posting about the proposal on LinkedIn, Klüssendorf described the tax system as ‘outdated’ and argues VAT should be reformed.
He added: “Equal treatment of milk and milk substitute products is long overdue.
“It has long since corresponded to social realities and puts people on an equal footing in their consumer behaviour.”
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Featured photo © Mickis Fotowelt via Adobe Stock