[h=3]04/23/2013 04:59 PM[/h] [h=1][/h] [h=2]Denmark Hopes Cheaper Soda Will Boost Economy[/h]
Speigel EXCERPT:
High value-added taxes and easy border access have long drawn Danish consumers to German grocery stores. Now, the government in Copenhagen hopes that repealing a tax on soft drinks and beer will reduce cross-border shopping and boost the domestic economy.
The Danish government is abandoning a beverage tax that it says is costing the country millions of euros as consumers cross the border to shop in Germany instead.
The tax on soft drinks is to be halved by July and completely abolished by next year, making a 1.5-liter bottle of soda three kroner (0.40) cheaper in the end. The lesser tax on beer is to be cut by 15 percent by July.
Finance Minister Bjarne Corydon told public broadcaster DR on Monday that the tax's repeal, which has broad support in parliament, would provide a "powerful growth spurt" to the Danish economy.
Cross-border shopping is nothing new to Denmark, as many goods have long been more affordable in Germany and much of the population lives a short trip away from Schleswig-Holstein, Germany's northernmost state. However, the tax on soft drinks and beer, implemented to encourage healthier drinking habits, dramatically increased the traffic.
A report commissioned by the Danish grocers' association DSK last year found that 57 percent of Danish households had crossed the border into Germany to buy beer or soft drinks over the past year -- the highest number ever measured in the regularly conducted study.
END EXCERPT
Gee, if 57% of Danes crossed the border to buy stuff they not only denied their government taxes, but, gave tax money to the German government. I wonder how many NY'ers buy smokes in NJ or CN...
Speigel EXCERPT:
High value-added taxes and easy border access have long drawn Danish consumers to German grocery stores. Now, the government in Copenhagen hopes that repealing a tax on soft drinks and beer will reduce cross-border shopping and boost the domestic economy.
The Danish government is abandoning a beverage tax that it says is costing the country millions of euros as consumers cross the border to shop in Germany instead.
The tax on soft drinks is to be halved by July and completely abolished by next year, making a 1.5-liter bottle of soda three kroner (0.40) cheaper in the end. The lesser tax on beer is to be cut by 15 percent by July.
Finance Minister Bjarne Corydon told public broadcaster DR on Monday that the tax's repeal, which has broad support in parliament, would provide a "powerful growth spurt" to the Danish economy.
Cross-border shopping is nothing new to Denmark, as many goods have long been more affordable in Germany and much of the population lives a short trip away from Schleswig-Holstein, Germany's northernmost state. However, the tax on soft drinks and beer, implemented to encourage healthier drinking habits, dramatically increased the traffic.
A report commissioned by the Danish grocers' association DSK last year found that 57 percent of Danish households had crossed the border into Germany to buy beer or soft drinks over the past year -- the highest number ever measured in the regularly conducted study.
END EXCERPT
Gee, if 57% of Danes crossed the border to buy stuff they not only denied their government taxes, but, gave tax money to the German government. I wonder how many NY'ers buy smokes in NJ or CN...
