Government Denmark abolished the tax on soda drink that are valid 83 years. Regulation in effect since 1930 was considered detrimental to the national economy, especially concerning employment.
"Termination of the tax will be effective from next year," an official said, as reported by drinkmediawire.com page.
The Danish government's decision is part of government policy in developing the national economy is also impacted by the European economic crisis. Labor issue is a sensitive subject in Denmark since the unemployment rate begins to show an increase in post-crisis.
In addition to removing the excise tax on soft drinks, before Denmark was to remove the products containing Saturated fat and Sugar Excise. The policy clearly shows that the costs and other negative effects of such a tax is higher than the expected benefits.
Excise on soft drinks is a rising trend lately. New York also apply to tax soft drinks for health reason. In several Southeast Asian countries including Indonesian excise on soft drinks is also a contentious issue.
For your information, Denmark is a pioneer country of excise soft drinks. In this country, pegged high excise sodas, soft drinks and even the highest in Europe.
Danish government made the announcement this week as part of an agreement on initiatives to stimulate economic growth and employment in Denmark. Because the excise on soft drinks, Denmark lost 5000 workers, and economic losses in the border regions as consumers of soda and then went to Germany and Sweden to get a soda at a price that is much lighter.
"This decision is a result of the efforts of all parties to highlight the negative impact of tax policy. These policies in the Danish government decided to recognize the repressive nature of the excise policy which adversely affect jobs and harm trade in the border region," said Hald Niesl, secretary General Beverage Lightweight Denmark.
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