Easter is this weekend and we thought it would be interesting to highlight a recent proposal to tax chocolate in the UK.

Dr David Walker, who proposed the controversial tax in a similar way to alcohol and cigarettes, has seen his proposal rejected by doctors. Delegates at a British Medical Association (BMA) conference in Clydebank, West Dunbartonshire, voted down the plan by just two votes.

Dr Walker said chocolate was a “major player” in problem weight-gain and its associated conditions including high blood pressure and joint pain. He said he was “disappointed” but glad his proposal had provoked debate.

But food industry leaders said such a proposal would only result in lighter wallets, not smaller waists.

Here at the UK Tax Blog we welcome moves to reduce tax rates, however we also understand that sometimes people need a nudge to do the right thing. Will a tax on chocolate help people become more healthy? This ultimately depends on the elasticity of demand for chocolate, an economic concept which looks at the effect of demand to a change in price. The more inelastic the demand, the less price will have an influence on the demand.

Often the government uses health as an excuse to increase tax revenues. Taxes on alcohol and cigarettes have had little effect on demand unless increased significantly. What may seem like a good idea in theory may have a different result in reality.

What do you think? Should we have a tax on chocolate similar to cigarettes and alcohol?  Is Dr Walker only looking at the health benefits and not taking into account the economics and behavioral aspects behind the proposed tax?

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