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Political Economy

Denmark to scrap fat tax as it create more problems than solutions intended

Saturday, 10 November 2012
Denmark's tax imposed on fatty food and sugar intended to improve public health, will be abolished.
The back tract came as the fats tax has lead to lots of headaches to the government than the intended result of curing the country's growing health time bomb in the waiting.

The food minister, Mette Gjerskov says that the tax had brought more problems and there is room now for something to be done about it in relation to the underlying health problem.

The taxes on saturated fat which was introduced in 2009 and meant that foods like ice cream, cakes, ready meals and meat products would became more expensive than in Sweden and other neighbouring countries has led to even trade problems. The higher taxes are not considered to have had the desired effect on the Danes' purchasing habits as more are dashing across the border and buying from Germans and Sweden.

At home, in Denmark, cooperation with several grocery chains promise that they'll lower prices when the taxes will be removed in the national budget of 2013.

Denmark is not alone in taking the tax weapon against obesity. In Finland, there is an excise tax on sugar that has made soft drinks and sweets to become more expensive.
by Scancomark.com Team

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