We throw away too much food: BiH should also abolish VAT on donated goods

In Europe, 125 million people are facing the threat of poverty. Every fourth European is at risk of poverty, while 16 million lack quality food.

It is estimated that 400,000 tons of food are thrown away annually in Croatia, which amounts to about 70 to 90 kilograms of wasted food per inhabitant. It is assumed that slightly less food is thrown away in BiH, but food is still being wasted.

European parliamentarians are now advocating for retail chains to donate unsold edible food to charitable organizations. Some countries have already taken measures to encourage the donation of unsold food. Among them is Croatia, where VAT on food donations was abolished at the end of last year, enabling food to be donated to charitable organizations that will deliver it to those most in need. This legal solution has contributed to retail chains donating all goods nearing their expiration date to humanitarian organizations. Such food goes to soup kitchens, where it is immediately prepared and distributed to the poor. This not only helps socially vulnerable families but also eases the burden on retail chains, as they would have to pay VAT on expired goods, even though they cannot sell them. In the case of food donations, the state exempts them from VAT on those goods.

According to European Commission research, more than 88 million tons of food are wasted annually in the EU, with associated costs amounting to around 143 billion euros, reports Patria.