Another tax for business?

Jeff Rogut

It has been reported that the Danish government has scrapped that the so called ‘Fat Tax’ which it imposed on its people less than a year ago.

The reason given for the scrapping, according to Danish health authorities, is that the policy failed to be effective. “Jobs were lost, prices were unmanageable and some reports even suggested that Danish people have been so put out by the restrictions that they’ve travelled outside the country to get their sweet fix”.

But will that rational decision sway those in Australia bent on seeing increased prices through taxes and greater burdens on business? Will we actually learn from one countries experience or doom ourselves by ignoring the Danish result and try to find excuses why such a tax would work in Australia?

Let’s keep an eye on this as more people seek to meddle in the lives of ordinary people.

Will the fat tax work for Australia?

Lucy Kippist
news.com.au
November 12, 2012

ITS official, the Danes cant live without their favourite sugary, fatty foods.

Less than one year after imposing their progressive health tax, the Danish government have scrapped it for being too expensive and taking jobs away.

Everything from butter and milk to pizzas, oils, meats and pre-cooked foods were hit with a 16 kroner per kilo of saturated fats in a product. According to a report by the AFP, when the tax was introduced the price of a pack of 250 grams (0.5 pounds) of butter rose by 2.20 kroner ($0.37, 0.29 euros) to more than 18 kroner.

Despite this, according to Danish health authorities, the policy failed to be effective. Jobs were lost, prices were unmanageable and some reports even suggested that Danish people have been so put out by the restrictions that they’ve travelled outside the country to get their sweet fix.

Scrapping the tax is a gutsy move for a country where 47 per cent of the population are already obese. But the decision also raises some questions around whether hiking up prices will actually change unhealthy eating behaviour.

Australia doesn’t have a fat tax yet, but there have been some serious discussions about the possibility of imposing one this year. After all, when it comes to obesity rates our population is not too far away from the Danes.

According to research by The Australian Institute of Health and Welfare’s report, Australia’s Food and Nutrition 36 per cent of Australians are overweight, with 25 per cent of us obese, including one in four children.

But is a fat tax, like the one imposed in Denmark, the answer? Maybe, says Jane Martin, the Executive Manager of Australia’s Obesity Policy Coalition (OPC).

The OPC is an independent body, who today have released findings from their detailed investigation into Australia’s self-regulatory system for food marketing.

According to their research, Australian advertising regulation bodies are not doing enough to protect children from junk food advertising.

But as Martin told news.com.au that the most effective approach to our obesity crisis is two-pronged.

“Pricing points are effective they deter people but as tobacco control has taught us, a combination of tax and social marketing is the most effective approach,” she said.

“The Government definitely need to tax sugary and fatty foods in conjunction with subsiding healthy foods.

“This two pronged approach is most likely to have the required affect and also benefit low-income families, who already spend the highest proportion of their earnings on food. And this way they will not be missing out,” she said.

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