Pizzas in Kerala get a 14.5% ‘fat tax’

Kerala has announced a 14.5% “fat tax” on pizzas, burgers, sandwiches and tacos sold through branded outlets. This announcement is in sync with the World Health Organization’s advocacy of using fiscal tools to promote healthy eating.

Finance minister T.M.Thomas presenting Budget

Will it have any positive outcomes?

According to the government, “the ‘fat tax’ may not stop children from eating junk food altogether. But there will definitely be a drop in consumption because many parents will put their foot down when it comes to spending more.”

• Also, like a cigarette tax and an alcohol tax, a fat tax would dissuade children from eating a lot of energy dense foods.
• Although the outcome is still being debated, the British Medical Journal said a year ago that consumption of ‘junk food’ fell in Denmark by 10 to 15%.
• Data from Finland show demand for sugar, sweets and sugary drinks is quickly affected by prices, particularly among less affluent sections, and helps cut body weight and thus diabetes risk.

Background:

Worldwide, obesity rates have prompted governments to consider imposing a tax to slow sales of food laden with saturated fat and sugars. Denmark introduced a surcharge a few years ago on foods that contain over 2.3% saturated fat, drawing criticism about excessive bureaucracy. It was abolished in 15 months.