Can targeted food taxes and subsidies improve the diet? Distributional effects among income groups

► This study find that tax reforms aimed at directing grain consumption to healthier levels are progressive. ► Low-income earners pay less taxes and the price level is reduced or increases less than for other income groups. ► High-income earners experience a higher increase in the fibre intake than other income groups from the VAT reforms simulated. ► The health effect of the reforms differs among the income groups.