Navigating Public Health Interest: Distorting Sugar Tax Impacts with Insights from the Netherlands

The implementation of taxes to combat public health challenges is gaining ground world wide. In the face of a climate emergency, transitioning to plant-based diets is imperative for both environmental and public health benefits, and tax is a powerful tool to steer consumer behavior as well as market conditions. In the Netherlands, cow’s milk is exempt from a "Lemonade tax," while plant-based options face taxation. This tax contradicts government objectives of promoting healthy and sustainable food choices, distorting the market. Furthermore, it discriminates against consumers who rely on plant-based options for medical, health, environmental, and ethical reasons, sparking public outcry.