Hamburger tax: a few per cent price increase can drastically discourage the consumption of the product

Many countries have imposed special taxes on junk food – told Lőcsei Tamás, Partner of PricewaterhouseCoopers to Inforádió, on the similar plans of the Hungarian government.

Lőcsei Tamás stressed that the tax rate differs from country to country ranging from quite a minimal to 2-3 percent. But the government has to be careful with these taxes, because several studies have pointed out, that this could have significant effects on consumption. The price of food much more affects consumption than being informed over the health effects – added the expert, who also said that a study found out, that two percent of tax increase, may decline the consumption of the product by 25 percent – reports Világgazdaság Online, after Inforádió.