Denmark has introduced what is believed to be the worlds first tax on foods containing saturated fat. Taxation in denmark consists of a comprehensive system of direct and indirect taxes. In theory, the workings of the fat tax are displayed in the following graph. Since all food fats no exceptions are mixtures of saturated, unsaturated, and polyunsaturated fatty acids, the tax will have to be worked out food by food. Oct 04, 2011 and earlier this week, with just a little more fanfare, denmark instituted an excise tax on foods high in saturated fat. The economic effects of the fat tax were almost invariably negative. The document sets out plans for government to work with the food and drinks industry to achieve a reduction in obesity.
The danish fat tax act6 confirms the trend in various eu member states to tax certain. The world health organisation recognises obesity as a disease. Contents acknowledgments v executive summary vi the pros and cons of taxing sweetened beverages based on sugar content 1 taxing sugar content is the least costly way to reduce sugar. Evy mages for the washington post the fat tax and the extension of the chocolate tax, the socalled sugar tax. Denmarks fat tax fiasco institute of economic affairs. Feb 26, 20 with groups proposing governments implement a tax on items deemed fattening, the canadian taxpayers federation invited jens klarskov head of denmark s chamber of commerce to tour canada. Although only 10% of the danish population is overweight, the countrys food experts think that saturated fat may be responsible for higher death rates. A proposed sugar tax that was meant to be introduced in 20 has also been. Such items are not necessarily items that are high in fat.
Part 1 is composed exclusively of the questions included in the cites biennial report format, approved at the th meeting of the conference of the parties to cites, october 2004. Ever since the income tax was introduced in denmark via a fundamental tax reform in 1903, it has been a fundamental pillar in the danish tax system. Denmark on saturday became the first country in the world to impose a fat tax after a week in which consumers hoarded butter, pizza, meat and milk to avoid the immediate effects. Producers must do this, pay the tax, and pass the cost on to consumers. Denmark cancels fat tax and shelves sugar tax because of. Ana kasparian and cenk uygur discuss on the young turks. Jan 29, 2010 denmark thrives despite high taxes denmark has the highest income taxes in the world, but it also enjoys low unemployment and steady economic growth. The hungarian junk food tax is levied on a broad range of items including food high in sugar and salt. Small taxes on soft drinks and snack foods to promote health pdf. An external file that holds a picture, illustration, etc. The excise levy is not to be confused with the danish fat tax placed on foods high in saturated fats that was introduced in 2011 but scrapped last year. California, have enacted such taxes, primarily on sugarsweetened beverages and energydense.
They also argue that the tax should not be limited to fats alone, because people might switch to other unhealthy foods with sugar and salt in them. This is just a simple explanation of fat tax in normal people language. Oct 02, 2011 denmark imposes a fat tax october 2, 2011 2. Denmark scraps its infamous fat tax after only one year. The danish government is applying a surcharge to foods with more than 2. A fat tax is a tax or surcharge that is placed upon fattening food, beverages or on overweight individuals. The objective of this study is to evaluate the effect of the danish tax on saturated fat in terms of changes in nutritional quality of the diet, that is, changes in saturated fat consumption, as. The poverty effects of a fat tax in ireland david madden university college dublin march 20 abstract. Denmark admits its fat tax failure adam smith institute. Revenue statistics 2019 denmark taxtogdp ratio over time taxtogdp ratio compared to the oecd, 2018 in the oecd classification the term taxes is confined to compulsory unrequited payments to general government. Why fat taxes wont make us thin journal of public health. How the danish experience shows the negative effects of a fat tax. Mike rayner and oliver mytton, british heart foundation health promotion research group, department of public health, university of oxford.
To combat growing levels of obesity, health related taxes have been suggested with taxes on foods high in fat or sugar. Fat tax denmark taxes on fatty food in denmark, uk, and us. Items will be subject to the surcharge if they contain more than 2. Earmarking and the political support of fat taxes toulouse school. Using price policies to promote healthier diets whoeurope. Costeffectiveness of fiscal policies to prevent obesity. Now, any food item high in fat, like butter, sweets, and pizza, will cost more in the hopes of convincing people to buy. As a growing number of countries implement, or announce plans to introduce, a sugarsweetened beverage ssb tax, this paper explores the public health rationale for such a tax and provides an overview of the international normative and policy instruments supporting the introduction of fiscal measures on sugary drinks. Although not mentioned in the report, following the introduction. The fat tax is one of the most criticised policies we have. The effects of the danish saturated fat tax on food and. Iea current controversies papers are designed to promote discussion on economic issues and the role of markets in solving economic and social problems. The term fat tax and junk food tax may be used to describe a tax levied on unhealthy food items with the aim of improving health.
One measure for tackling diet related health problems is to introduce some form of fat tax. Many danes switched to cheaper brands or went over the border to sweden and germany to do their shopping. A public health food tax on packaged products with high sugar, saturated fat or salt levels was introduced in september 2011 in hungary and a tax on saturated fats was introduced in october 2011 in denmark. Fat tax in denmark is repealed after criticism the new.
Hungarys new fat taxes are perhaps the most comprehensive, having been levied on. For governments, fiscal policy generally relates to its revenue collection and expenditure through instruments such as taxes, subsidies and changes in the level and composition of government spending such as welfare benefits, tax benefits. Oct 07, 2011 denmark is the first country to introduce a fat tax on foods with high saturated fat content. Feb 18, 20 in denmark, there are excise duties on chocolate, candy, ice cream and soft drinks commonly referred to as a sugar tax intended to curb obesity. Denmark has taxed saturated fats since october 2011, and the experiment has been a failure. The fat tax and nutrition taxes in denmark the danish fat tax was presented as part of a tax reform package in 2009. It hits all foods with a saturated fat content above 2. A fat tax is a tax or surcharge that is placed upon fattening food, beverages or on overweight.
European nations launch tax attack on unhealthy foods ncbi. On denmarks fat tax food politics by marion nestle. Many key economic policies relevant to obesity prevention are of a fiscal nature. Euwide fat tax scheme or rather go after the member states adopting on a unilateral basis such measures5. Nov 10, 2012 denmark to scrap worlds first fat tax. Yesterday, the government published a call to action which lays out its strategy for tackling obesity in england. Introduction obesity has become a major health policy issue in a number of countries for a european perspective see kurzer and cooper, 2011, while for a us perspective see flegal et al. Denmark has become the first country in the world to introduce a tax on foods seen as being harmful to health. Nov 11, 2012 what the world can learn from denmarks failed fat tax. Today various personal and corporate income taxes yield around two thirds of the total danish tax revenues. On 5 february 2015, the european commission initiated a formal investigation procedure against denmarks socalled fat tax, which was introduced in 2011 and abolished in january 20.
For the purpose of it processing, the tin should be written as a block of 10 digits without dash. Fat tax definition and meaning collins english dictionary. Tin structure format explanation comment 9999999999 10 digits there is a dash between the 6th and 7th digits. Worldwide, obesity rates have prompted governments to consider imposing a tax to slow sales of food laden with saturated fat and sugars. Denmark said saturday it would scrap a fat tax it introduced a little over a year ago in a world first, saying the measure was costly and failed to change. Denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. Revenue from a fat tax could be used in various ways, such as financing subsidies. Denmark cancels fat tax and shelves sugar tax because of threat of job losses. Nov 12, 2012 the worlds first fat tax will soon also be the first to be abolished. What the world can learn from denmarks failed fat tax the. Denmarks lawmakers thought they had a winwin through a tax on food with more than 2. The level of the fat tax is determined through majority. On 1 october 2011, denmark introduced a tax on foods by targeting those products that are high in saturated fat.
The tax on saturated fat is expected to account for more than onethird of that. Denmark levies fat tax radiofreeeuroperadioliberty. What links here related changes upload file special pages permanent link page information wikidata item cite this page. It hit all food items with a saturated fat content. Nov, 2012 citing a harmful effect on businesses and consumer buying power, lawmakers in denmark have repealed the socalled fat tax, which was charged on foods high in saturated fats, after just one year. Oct 06, 2011 not a tax for fat people, exactly an idea we once considered on more satirical grounds, but a tax for fatty food. A fat tax aims to discourage unhealthy diets and offset the economic costs of obesity. Danes are worried that the tax has increased food bills which was the point of the tax and that it could be threatening the food industry. Denmark to scrap worlds first fat tax medical xpress.
Permission is granted for reproduction of this file, with attribution to the urban institute. These documents recognize that tackling the burden of dietrelated. The danish government has said it intends to abolish a tax on foods which are high in. Sugar tax in denmark a burden for food and drink firms. Similarly, a fat tax is a tax applied to foods containing a specified level of fat, or a certain kind of fat, in order to reduce health and economic problems produced by the overconsumption of these foods.
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