First modification:
In Colombia, at the beginning of November, a tax on ultra-processed foods came into effect, which seeks to increase their value progressively, to discourage consumption. Which means progress in Latin America, since it is the first country in the region to apply a measure of this nature, which goes beyond the “front labeling” applied by other nations.
On November 1, 2023, the so-called “healthy tax” came into effect in Colombia for ultra-processed foods and drinks, that is, those that contain sugar, sodium and fats in large proportions.
This tax generated a strong debate in several sectors of Colombian society: the food industry and supermarkets opposed it due to the decrease in sales it could generate; and economists warned that this could impact inflation by increasing food prices.
According to Oliver Pardo, director of the Fiscal Observatory of the Javeriana University, “the poorest households would have to spend five dollars more to pay taxes” if the consumption of these products continues and they are not replaced by healthier ones.
Meanwhile, the national government assured that this initiative seeks to discourage the consumption of ultra-processed foods, so it does not affect others that are part of the basic basket such as fruits, vegetables, meats and legumes.
The effect of the tax on ultra-processed foods on total inflation is 0.21 percentage points in 2023, 0.11 pp in 2024 and 0.12 pp in 2025. Learn more 👉 pic.twitter.com/SMDmMcZZgq
— MinHacienda (@MinHacienda) October 25, 2023
From November 1 until the end of 2023, the tax implies an increase of 10% on products, during 2024 5% is added (being 15%) and in 2025 the progressive stage will culminate, with 20 % increase.
In this way, Colombia joins the list of more than 70 countries in the world that, according to the Pan American Health Organization (PAHO), apply similar measuresand the more than 20 American nations, which have taxes on sugary drinks.
For specialists, the Colombian “health tax” became an example for the region, since it is a measure based on public health, which does not seek to collect revenue.
In Latin America, Argentina, Chile, Uruguay and Brazil They apply the so-called “Front Labeling”, which are warning symbols on ultra-processed products. They have large amounts of fat, sugar and sodium.
With EFE and local media.
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