60% of Germans Back Tax Cut on Plant-Based Milk to Match Dairy VAT

A majority of Germans support a lower VAT rate on plant-based milk, with 61% in favor of reducing the tax to match that of dairy milk. Stakeholders are pushing for this change to level the playing field for non-dairy milks, which are gaining popularity in the country due to their health benefits. Currently, plant-based milk carries a 19% VAT rate, significantly higher than the 7% levy on cow’s milk, making it more expensive for consumers.

Plant-based milk is the second-largest segment in Germany's vegan market, with nearly half of consumers now opting for these products. The popularity of non-dairy milk is on the rise while dairy consumption is at historic lows. The shift towards plant-based alternatives is driven by factors such as affordability and health benefits, with consumers increasingly looking for products that are nutrient-rich and suited to their dietary preferences.