A Fat Tax has been discussed around the world since the mid-Nineties.
Now it seems that one country has decided to take it on board.
In a bid to reduce its rates of obesity and heart disease, the Danish Government is applying a surcharge to all foods that contain more than 2.3% saturated fat.
Will it work? If so, how will other governments go about implementing it?
How it will work
In 2004, the Danish Government made it illegal for foods to have more than 2% trans fatty acids. In 2010, it began taxing all sugary foods in an attempt to put a stop to rising obesity levels and their associated health problems.
Governments around the world are also considering implementing a fat tax – but there is some debate as the best way to approach it.
At present there are three schools of thought:
1. Increase the tax and cost of high fat foods, using the money to reduce the price of healthy food options;
2. Only tax foods with a poor food score (e.g. only red foods in the traffic light system); or
3. Spread a tax across a variety of food types.
However, many believe that a fat tax will create an unnecessary stigma and/or drive people to other unhealthy alternatives.
Which foods to target?
One of the biggest problems with applying a fat tax is deciding on what foods to tax.
High fat, high sugar, or high salt? Each has contra-implications for longterm health and wellbeing.
For instance, taxing only high fat foods would just drive people to eat high salt or high sugar foods instead.
Taxing these foods will also drive up prices. This may initially seem like a good idea, especially for less healthy foods. But, as the rising prices of cigarettes shows, increased prices don’t always result in reduced sales.
Other alternatives
An alternative to taxing foods is to create a health promotion strategy that increases education about nutrition, healthy food choices and occasional foods.
Many believe this is a much better solution to rising obesity rates and lifestyle diseases. They argue that ‘banning’ unhealthy foods can lead to a spike in consumption rather than a reduction.
Also, unhealthy foods are not just consumed by overweight or obese people. There are many ‘thin’ people who consume large amounts of unhealthy food and yet a fat tax could create a stigma against the obese. This in turn may reduce their efforts to lose weight and improve their health.
There’s no denying that being overweight has a negative effect on your health and/or lifestyle. Creating a fat tax may be one option to help us change our food habits. Cheaper prices might also make healthier choices more appealing.
Then unhealthy food providers could no longer argue that people consume fatty, salty and sugary foods because processed food is cheaper.
Written by Andrew Talati