BERLIN: Germany’s federal environment agency wants to raise taxes on animal products such as liver sausages, eggs and cheese to 19 percent from 7 percent for environmental reasons, according to a Süddeutsche Zeitung report published Thursday.
The tax hike, which would significantly increase shelf prices for consumers, is designed to offset the impact of the agricultural industry on climate change through high methane emissions.
According to a recent study conducted by the authority, 90 percent of industry subsidies totaling €57 billion per year, according to 2012 data are harmful to the environment and work against Germany’s implementation of the Paris climate agreement.
The additional tax revenue, estimated to be €5.2 billion per year, could be used to reduce the VAT on other food products to below 7 percent, agency chief Maria Krautzberger suggested.
