Why a UPF tax would be near impossible and ineffective

A recent survey of UK consumers claimed most Brits want a tax on junk and ultra-processed food manufacturers, believing it would help tackle the obesity crisis.

Consumers in the UK have an apparently growing vendetta against UPF​, with near two-thirds (62%) of them telling a Health Foundation survey unhealthy food advertisements​ should be banned from TV and online before 9pm, as well as 53% of them demanding a tax on UPF makers.

But it’s not only Brits. EU consumers also villainise UPFs, with 67% believing they contribute to rising obesity levels and other health issues, according to a recent EIT Food Consumer Observatory survey.

EU citizens are also less trusting of UPFs in general, with 40% saying the industry isn’t regulated enough and 67% not liking it when their foods contain unrecognisable ingredients.

So, if one was implemented, how would a tax impact manufacturers? And would it help slim down consumers’ waistlines?

Who would police a UPF tax?

Launching a UPF tax would be difficult to manage and unlikely to settle consumer concerns, according to Danny Butt, director of consultancy Food Innovation Solutions. “If you’re talking at a macro level, as a tax, it could be similar to the sugar tax [in the UK], so if it’s built in line with that then you have a situation where some brands have to cost reduce or absorb [the tax].”

However, the increased cost of living has already led to product price hikes, while retailers are also reluctant to pass on additional costs to customers. “But the impact would be specific to the brands, so a company like Coke could put prices up because they are a market leader, but private label and smaller businesses wouldn’t be able to stomach it,” he continues.