Together for 7 percent VAT on plant-based drinks too

The food retailer REWE and the manufacturers vly, Berief and Oatly are jointly calling on the German Bundestag to apply the reduced VAT rate of 7 percent to plant-based drinks made from oats, peas, soy, etc. The alliance has launched a petition to this effect on the change org platform. The alliance has launched a petition on the change.org platform calling on the Bundestag to reduce the VAT rate from the current 19 percent to 7 percent. The petition can be signed here: Petition – Together for 7% VAT on plant-based drinks too – Germany – Change.org. The alliance hopes for broad public support by sharing the link and signing the petition. #wenigeristfairr

REWE, vly, Berief, and Oatly believe that the current higher tax rate of 19 percent disadvantages certain consumer groups and contradicts climate, health, and nutrition policy goals¹. Tax equality with other staple foods is therefore objectively necessary and socially just. The partners’ primary concern is to create a level playing field. The tax reduction is to be passed on to consumers by the companies.

Five strong reasons in favor of the petition:

1. Equal treatment of comparable products

The categorization of animal milk as a “staple food” and plant-based drinks as “beverages” is not plausible, as the latter are an important option for people who do not consume animal milk for various reasons. This includes, for example, intolerances, allergies or certain dietary preferences. Equal tax treatment of plant-based drinks and animal milk makes it easier for consumers to make choices according to their personal needs. The sharp rise in demand for plant-based drinks in recent years shows that these products are accepted by the population as a wholesome alternative and are seen as a staple food². The higher VAT puts people who consume plant-based drinks at a disadvantage, affects their freedom of choice and makes their access to a staple food relevant to them more expensive.

2. Ecological Sustainability

Adjusting the tax rate would also be a lever for transforming our food system towards greater sustainability. Compared to the production of animal milk, the production of plant-based drinks requires less land and water and leaves a smaller carbon footprint³. This means that plant-based options can make an important contribution to climate protection and to reducing the environmental impact of our diet.

3. Economic advantages

A reduction in VAT also makes sense from an economic perspective. Although the adjustment would reduce tax revenue, it would also reduce the consequential climate costs. A study by the Institute for Policy Evaluation puts the reduction in tax revenue in one year at around 40 million euros. This is offset by the reduction in future climate impact costs due to lower CO2 emissions of around 62.4 million euros⁴.

4. Balanced diet and health benefits

Fortified plant-based drinks are a nutrient-rich choice and are listed in official dietary recommendations around the world, for example in Finland and the United Kingdom. Plant-based drinks support a balanced diet. According to the German Nutrition Society (DGE), a plant-based diet can be beneficial to the health of adults—taking into account certain aspects such as vitamin B12 supplementation, a balanced and well-planned food selection, and an adequate intake of potentially critical nutrients. The DGE also mentions other health benefits such as low saturated fat content, no cholesterol, and, in some cases, secondary plant substances and fiber⁷.

5. European comparison

In a European comparison, hardly any other EU country puts plant-based drinks at such a disadvantage in terms of VAT as Germany. France, the Czech Republic and Portugal, for example, apply the same tax rate to cow’s milk and plant-based drinks. Equal tax treatment of animal dairy products and plant-based drinks is not only objectively necessary, but also a step towards a fairer, healthier and more sustainable food policy.

REWE, vly, Berief and Oatly are therefore calling on people to sign the petition and appeal to the members of the German Bundestag to take the necessary steps to equalize the VAT on plant-based drinks! #lessisfair