As of October 1, 2011, fatty foods in Denmark are subject to a tax of $3.51 per kilogram of saturated fat if over the 2.3% limit. In an effort to curb increasing instances of obesity and heart disease, the outgoing Danish government has passed the first ever “fat tax” in the world. Now Danes can measure their growing waistlines in dollars and cents.
The announcement of the new tax in late September caused a frenzy of fat food hoarding in the country as storeowners and consumers alike lined their shelves with all the fattiness they could fit. One of the country’s major margarine producers reported a 500 metric ton increase in orders for September. If margarine’s saturated fat is estimated at 15%, over $75 000 in tax was saved on just these margarine orders.
Whether or not the tax will last would be a lengthy debate, but consider if this trend caught on worldwide. In Denmark, approximately 1 in 10 adults are considered clinically obese. While this number may seem reasonably high, it pales in comparison to over 1 in 3 adults considered obese in the United States and over 1 in 5 in Canada. Take a look in your fridge and your cupboard and do a quick count of what foods you have that would be pricier in Denmark. It isn’t too bold to assume that within the student community this tax would be pinching the wallets and waistlines of many.
Hungary also has been pursing the food taxes, with a recent “chip tax” plan that includes a fee for foods “too high” in salt, sugar and fat as well as increasing the tax on liquor and coffee. Many thanks should be given to the fact that Canada hasn’t done the same. Not only would inebriated nights become much more expensive, but so would the morning recoveries.
While these taxes are passed for a noble cause, saving us from bad foods by make them hurt the piggy bank, it raises the question of whether taxation is the real solution. The Danish government is expecting $415 million revenue from the new tax, which should probably be put towards weaning the population off bad foods without the threat of tax. Whether through more public health education or the pursuit of stricter food regulation, it makes sense that this tax should essentially work to eliminate the need for it. The means of imposing restrictions on the national diet don’t have to come through a form of tax, but the government is evidently drawn to the revenue it will create.
Hopefully, this tax will have some positive impact and not just cause Danes to fork over (no pun intended) more money to maintain their current living style. As this new tax is scrutinized, it can be hoped that it will spur more interest on food content regulation instead of putting the burden on the consumer. The business of fat foods in the world is hard to disrupt, but it is time for the market to be put on a diet.
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