Making people pay social cost would achieve a more efficient allocation of resources. Increasing the cost of unhealthy foods, would reduce demand and play a role in reducing obesity levels. A tax on fatty foods would make people pay the social cost of these foods. Those who are obese are 25% less likely to be in employment, leading to lower tax revenue and higher welfare spending on benefits. Lost earnings from obesity related disease and premature death. These costs are due to NHS costs of treating disease related to obesity, such as heart disease, angina, diabetes, strokes. Obesity is estimated to cost the UK economy around £6.6–7.4 billion a year. For example, eating unhealthy foods contributes to the problem of obesity. Consumption of Fatty foods have external costs on society. Advantage or Pros of a Fat Tax.Ī Fat tax would make people pay social cost of unhealthy food. Let’s look some interesting pros and cons debate on fat tax. But health wise if we see, there are few pros and cons of a fat tax. There are certain effects of this fat tax implementations. That consumption of ‘junk food’ fell in Denmark by 10 to 15 per cent and the Danish Government could have reaped the dividends, had it stuck to its decision.
the British Medical Journal said a year ago. It was abolished in 15 months.Īlthough the outcome is still being debated. on foods that contain over 2.3 per cent saturated fat, drawing criticism about excessive bureaucracy. Coconut oil, a Kerala staple, was chosen for an additional five per cent tax to help raise coconut procurement price.ĭenmark introduced a fat surcharge a few years ago. Kerala has also levied a 5 per cent tax on packaged wheat products like atta, maida, suji, rava and packaged basmati rice. Kerala’s ‘fat tax’ on pizzas, burgers, sandwiches and tacos announced has been hailed as an important public health measure. Worldwide, obesity rates have prompted governments to consider imposing a tax to slow sales of food laden with saturated fat and sugars. This is just a simple explanation of fat tax in normal people language. ‘Fat Tax’ Pros and Cons.Ī proposed tax on foods or drinks judged to be unhealthy and whose consumption is believed to be linked to rising obesity levels. Why is the tax imposed? or What is the actual purpose of fatty tax?. Let’s get some background and thoughts on Fat Tax Term. But many of us not aware about this term ‘Fat Tax’. Recently we news headlines come with some fat tax implementation in Kerala, first time in India, also.
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