Well, first off, yes it is real, there is a sort of ‘fat’ tax that is applied for those over a certain BMI/waistline in Japan (85 cm for men and 90 cm for women). Researchers have struggled to find any positive effect on health. Shame on them! This is how they manage to rebrand their elitist paternalism as a courageous struggle against ‘powerful interests’. About a year ago, the Danish government tested out a policy never before seen in the world. He is the author of, REGISTERED IN ENGLAND 755502, CHARITY NO. The failure of Denmark's fat tax was also due to financial reasons, with politicians identifying the fat tax as a funding source for the government, rather than a health initiative that attempted to improve the health outcomes of society. I am not sure what the right way is, but the way they are doing it now is not it. The controversial tax, designed to improve the health of Danes by discouraging consumption of fatty foods, was opposed by farmers and food companies and was unpopular among consumers. Share: Tags: Sugar tax. Denmark introduced a tax on saturated fat in food products with effect from October 2011. Nov 17th 2012. As part of a move to curb the consumption of (apparently western) fast food, Thomas Isaac, finance minister in the newly elected LDF government, announced plans to mop up Rs 10 crore from this new tax. Of course, there is a more fundamental liberal point. This category only includes cookies that ensures basic functionalities and security features of the website. by mcwebmaster | Aug 10, 2015 | Ineffective consumer behaviour, Ineffective on obesity. CC/235 351, LIMITED BY GUARANTEE. Denmark has taxed saturated fats since October 2011, and the experiment has been a failure. “And a wealth tax makes a lot of sense in principle,” Yang said. Enviably healthy Denmark is leading the way in taxing unhealthy food. The tax funds are used to pay for the different expenses that Danish society has such as welfare benefits, state pension, child benefits and for public institutions such as schools, hospitals, libraries and the police. Why fat taxes won't make us thin ... . It is a good idea to question why the health-obsessives are going after saturated fats to begin with. Simple economics tell us that when you tax something, like saturated fats, enough to cause a change in behaviour then their consumption will fall in favour of a substitute. While Kerala's taken a swipe seemingly at Western fast … In bringing in its fat tax, the Danish government also wanted to raise revenue, reduce costs associated with obesity-related diseases, and increase health and longevity. If people do cut more meat out of their diet it may mean that farmers’ earnings will go down. Why are they doing it, and will it work . Hungary taxes foods high in sugar, salt and fat. These cookies will be stored in your browser only with your consent. The regressive effects of Denmark’s short-lived tax on saturated fat sowed the seeds of its demise. 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. The outcome of … I’m frankly disappointed the way that a civilised country such as Denmark have to lower themselves to taxing the poor – yes, that is what it is behind all the smoke and mirrors – to try and “Improve” their population’s health. Denmark’s Failed Fat Tax. Denmark introduced a fat tax in 2011 but repealed it by 2013 when it found consumers shopping across the border for high fat goods. I would have thought that politicians would have got the message by now but it seems that this is not the case because illiberal, undemocratic public health campaigns continue to make headlines in the mainstream media and to feature strongly as part of the wider political agenda. With 93 percent of votes counted, it appears the Illinois Fair Tax Amendment did not pass in the general election. The nutritional science is far from settled on whether carbohydrates are worse for us than other macronutrients (protein and fat). 4 s. The most important rhetorical trick of these groups is the distinction between ‘the industry’ (bad) and their consumers (good). Denmark says it will 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 Danes' eating habits. — However, the fat tax was abandoned after 15 months when surveys suggested only 7% of Danes had reduced their fat intake. In this new study, The Proof of the Pudding: Denmark’s fat tax fiasco, Christopher … Both Denmark and Hungary have introduced a fat tax or junk food tax, and France is taxing sweetened drinks. The real fat cats are in Washington, piloting a ship that is sinking as the result of their 20-year spending binge. Denmark’s Failed Fat Tax. I hope that this flaw in the system will be fixed soon. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Denmark ditched their fat tax and cut levies on beer, but Danes still furnish health campaigners with the bulk of their evidence for "sin taxes" on unhealthy food and drink. Denmark's fat tax failure may hold several lessons for UK policymakers tempted to seize on tax hikes of popular food and drink to improve public health. Denmark’s food taxes A fat chance. Politicians are unlikely to know better. This paper summarises the recently introduced fat tax in Denmark, which came into force on 1 October 2012, and discusses some of the consequences of introducing the tax. There were, at best, single figure percentage declines in the sale of high-fat products such as butter, but 80 per cent of Danes said the tax didn’t make them change their shopping habits at all. They encourage black market activity and cross-border shopping. COPENHAGEN . If obvious lack of success has not derailed the public health gravy train I am not sure what might. I am doing a research paper on this “fat” tax for my political science class and your article definitely helped me see different viewpoints about this. The tax on fat could be making the 20% of Danes that changed their diets less healthy. Unless and until more data emerge, the effectiveness of the world’s first fat tax will have been buried under its own controversy. By the time the fat tax was repealed 15 months later, it had become a byword for well-meaning government folly. — In 2011, the government also introduced a fat tax, levied at 16 Kroner (£1.78) on food items with more than 2.3% saturated fat, and planned a more general sugar tax. In dollars, the taxes will add 12 cents to a bag of crisps and 40 cents to the price of a burger. Citing a harmful effect on businesses and consumer buying power, lawmakers in Denmark have repealed the so-called fat tax, which was charged on foods high in saturated fats, after just one year. Wealth-tax supporters do not seem concerned about the likely damage to economic growth, and they have raised little money and have been a beast to administer. What I find disturbing about this report is the attitude displayed by the public health industry in the face of abject failure. Danes will now face higher income taxes to make up for the loss of the fat tax. The fat tax is a tax paid … Denmark has introduced what’s believed to be the world’s first fat food tax, applying a surcharge to foods with more than 2.3 percent saturated fats, … Europe Nov 17th 2012 edition. Denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. The Danish government implemented this tax in an effort to reduce the population’s consumption of fatty foods, as Denmark’s overweight and obesity rates have steadily … In this article, from the health section of the Spectator magazine website, the author explains how, one and a half year after its abolishment, pro fat tax voices are trying to rewrite history, claiming the Danish tax was more … In October 2011, Denmark passed the world’s first fat tax – a tax on butter, milk, cheese, pizza, meat, oil and processed food that contained more than 2.3% saturated fat. Almost invariably, they hurt the poor more than the rich. A fat tax would reduce prevalent IHD cases by a minimum of 500 and 300 among males and females in Denmark, respectively, up to a maximum of 5,600 and 4,000 among males and females in the UK. 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.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.. We also use third-party cookies that help us analyze and understand how you use this website. 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. The fat tax did, however, raise more money than expected, but this only goes to show that it reduced the amount of high-calorie food sold by less than was anticipated. You know something is wrong when governments are using tax to influence buying habits. With 98% of precincts reporting as of Wednesday morning, 55% of voters voted “No” to change the current flat tax rate of 4.95%. Snowdon. Environmentalists and nimbys do the same (air travel only serves the airline industry / development only serves the developers). THE FAT TAX AND NUTRITION TAXES IN DENMARK The Danish "fat tax" was presented as part of a tax reform package in 2009.1 Following a number of amendments, it was finally adopted in March 2011 and took effect on October 1 of the same year. Gov. It emphasises the use of local and seasonal ingredients and is a … That the impact of the tax is largely unknown is a good enough reason not to mess with the food on our plates. As mentioned, most previous (prospective) … Denmark introduced a fat tax in 2011 but repealed it by 2013 when it found consumers shopping across the border for high fat goods. Under intense pressure from the food industry in an already weak economy, the Danish government has repealed the fat tax and abandoned an impending tax on sugars. Opinion polls showed that 80 per cent of Danes did not change their shopping habits at all as a result of the tax. Studies done by the London School of Economics show that the only positive thing with this legislation is giving more money to the government to spend; it actually wouldn’t reduce consummation rates of junk food within the country. On the other side the new measure is expected to bring the government about $400 million additional tax dollars a year. Although Denmark’s welfare model seems on paper to provide a sufficient safety net for its citizens, in practice, conditions today threaten to reveal the celebrated welfare state as having effectively been a mere illusion. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Today various personal and corporate income taxes yield around two thirds of the total Danish tax revenues, indirect taxes being responsible for the last third. “And a wealth tax makes a lot of sense in principle,” Yang said. I didn’t know Denmark had considered such tax. Most of us tend not to change what we eat based on a change in price — foods like butter and bacon are relatively price inelastic. After being voted for by an overwhelming majority of MPs, the tax on saturated fat led to inflation… Much Thanks. Furthermore, this paper discusses the theoretical background and reasoning for imposing a fat tax as well as some of the problems and concerns stated, especially by the food industry. A tax of at least 20 percent placed on sugar-sweetened drinks could drop obesity by 3.5 percent and prevent 2,700 heart-related deaths each year, … at http://healthland.time.com/2012/05/16/study-a-20-fat-tax-would-improve-public-health/. In this new study, The Proof of the Pudding: Denmark’s fat tax fiasco, Christopher … Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Necessary cookies are absolutely essential for the website to function properly. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. World’s first fat tax: what will it achieve? One poll found that 70% of Danes felt the tax was ‘bad’ or ‘very bad’ and 80% said it had not changed what they ate. Sadly, politicians know that they can appear to attack the scapegoat of the unhealthy citizen, while taking more money from our pockets. Furthermore, this paper discusses the theoretical background and reasoning for imposing a fat tax as well as some of the problems and concerns stated, especially by the food industry. It is my belief that this could work if done the right way. The Danish government implemented this tax in an effort to reduce the … The tax has been in place since the 1930s, and Danes are currently taxed DKK 1.64 (about €0.22) per litre of sugar-sweetened soft drink. The economic effects of the fat tax in Denmark were uniformly negative. Evidence from Denmark demonstrates that such a policy would not only have negative economic effects, but would also fail to achieve its intended public health objectives. It is hard to coerce ‘healthy’ behaviour, and government should not try to. This website uses cookies to improve your experience while you navigate through the website. You also have the option to opt-out of these cookies. Gwozdz, Wencke./ Showcase : On the Way to a Fat Tax in Denmark.Berlin : CORPUS - The SCP Knowledge Hub, 2011. Hungary taxes foods high in sugar, salt and fat. Denmark’s fat tax is being opposed by the country’s food industry, especially the meat producers. Author. Denmark’s food taxes A fat chance. The nation of Hungary introduced a "fat tax" today, as headline writers across the English-speaking world struggled to come up with clever, just-shy-of-obvious puns to apply to the news. Denmark says it will 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 Danes' eating habits. This rhetoric is pathetic, but widespread, and not limited to the health lobby. Many believe that a good diet includes saturated fats, as they have been linked to increased testosterone, boost the effects of omega-3 fatty acids, and improved immune system function. Christopher Snowdon is the Head of Lifestyle Economics at the IEA. [21] It had a trivial effect on the consumption of the target ingredient, it led to a range of substitution effects, it … New research has found that fat taxes would increase the cost of living for UK families. By clicking “Accept”, you consent to the use of ALL the cookies. In October 2011, Denmark passed the world’s first fat tax – a tax on butter, milk, cheese, pizza, meat, oil and processed food that contained more than 2.3% saturated fat. At least ten per cent of fat tax revenues were swallowed up in administrative costs and it was estimated to have cost 1,300 Danish jobs. This paper summarises the recently introduced fat tax in Denmark, which came into force on 1 October 2012, and discusses some of the consequences of introducing the tax. J.B. Pritzker’s proposed constitutional amendment to implement a graduated income tax system failed to pass on Election Day. The world’s first fat tax will soon also be the first to be abolished. The tax was, however, … Wealth Tax: There's little doubt that the political flavor of the day is what the left calls "democratic socialism." Nobody likes taxes, and the fat tax was especially unpopular among Danish consumers, who resented having to pay more for butter, dairy products and meats – foods naturally high in fat. (MORE: Fat Forecast: 42% of Americans Could Be Obese by 2030) More and more countries are adopting fat taxes in an effort to curb rising obesity rates. 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. The objective of this paper is to make an effect assessment of this tax for some of the product categories most significantly affected by the new tax, namely fats such as butter, butter-blends, margarine and oils. A study on the French soda tax found that while the tax was fully passed on to the price of sodas (no untaxed substitutes), the tax was not fully passed on to the price of flavoured water and fruit drinks (substitutes more widely available). Stay Informed. Fat tax supporters try to rewrite failed Danish fat tax history. Text: Rahul Sachitanand, ET Bureau Last week, the Kerala government imposed a 14.5 per cent tax on the consumption of fast food. Opinion … Growing social problems may be on the horizon for the “world’s happiest country”. Over the past 30 years, traditional Danish food has been re-invented as New Nordic Cuisine. These cookies track visitors across websites and collect information to provide customized ads. But opting out of some of these cookies may have an effect on your browsing experience. 28 Similarly, in Denmark, supermarkets did not fully pass on the tax to consumers on butter and oils, while discount stores fully transmitted the tax for blended spreads and oils. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Denmark is one of the world’s largest bacon and pork producers. Denmark instituted a soft drink tax in the 1930s (it amounted to 1.64 Danish krone per liter), but announced in 2013 that they were going to abolish it along with an equally unpopular fat tax, with the goal of creating jobs and helping the local economy. Get informed. However you may visit Cookie Settings to provide a controlled consent. I expect this to be removed/altered and an official apology written to him. Undefined cookies are those that are being analyzed and have not been classified into a category as yet. The tax increased the cost of butter and other foods with more than 2.3% saturated fat The Danish government has said it intends to abolish a tax on foods which are high in saturated fats. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. The proposed sugar tax plans were also scrapped. Denmark has a progressive tax system All citizens use the public sector in some way, and as a general principle all citizens must thus help pay for it. The flat tax will remain in the Illinois Constitution. For decades they have been allowed to pursue their agenda at considerable expense to the public, without benefits to anyone and with negative consequences for many. Denmark has announced that it will abolish its soft drink tax as part of a raft of measures intended to create jobs and boost the economy. The fat tax did, however, raise more money than expected, but this only goes to show that it reduced the amount of high-calorie food sold by less than was anticipated. “The problem is it’s been tried in Germany, France, Denmark, Sweden, and all those countries ended up repealing it because it had massive implementation problems and did not generate the revenue that they projected.” A tax of at least 20 percent placed on sugar-sweetened drinks could drop obesity by 3.5 percent and prevent 2,700 heart-related deaths each year, according to a study in the British Medical Journal. They treat people with contempt whilst claiming to have their interests at heart. Add email to start...: Help to Buy issues won't be solved by taxing speculators, Hiking corporation tax: bad idea, worse timing, Denmark’s fat tax disaster – the proof of the pudding, http://healthland.time.com/2012/05/16/study-a-20-fat-tax-would-improve-public-health/. Evidence from Denmark demonstrates that such a policy would not only have negative economic effects, but would also fail to achieve its intended public health objectives. At the same time, fat prohibitionists tell us that what Denmark really needed was a much higher tax to have the desired effect. They lead to compensatory purchasing and brand switching. In most cases, that substitute will be carbohydrates. Taxation in Denmark consists of a comprehensive system of direct and indirect taxes. Shortly after the repeal of the tax, research was published showing that consumption of saturated fat had declined in Denmark. Gov. The fat tax in Denmark distinguishes itself from the taxes mentioned above by targeting a nutrient instead of specific groups of food and as such this is the first tax of its kind in the world. 3 An aspect that has hardly been investigated in relation to such food taxation schemes is the taxes' impacts on the formation of consumer prices. The negative consequences of putting ‘sin taxes’ on products when demand is inelastic are well known. Although it is politically expedient to portray them as ‘nudges’ designed to improve society or compensate for negative externalities, they typically act as stealth taxes while doing little to reduce harmful consumption. Analytical cookies are used to understand how visitors interact with the website. Also, there is a comprehensive article on Time talking about the same thing. Denmark is the first country to introduce a 'fat tax' on foods with high saturated fat content. The short tale of Denmark’s ‘fat tax’ can be easily told. Why a fat tax is not enough to tackle the obesity problem July 1, 2012 4.47pm EDT. You’re headline was stolen from my good friend Ross McCormack. The “fat tax” illustrated many of the problems already discussed. Media enquiries: 07584 778207 (Call only, 24 hour), Adam Smith Institute, 23 Great Smith Street, London SW1P 3DJ, United Kingdom, John C. Duffy and Christopher The activists, politicised medics, PR professionals, journalists and social scientists employed in this industry seem incapable of recognising the existence of public opinion except in the sense that it is a useful tool if it can be made to appear by whatever means to align with their agenda. If someone decides that they prefer Danish bacon once a week to the last (probably quite uncomfortable) five years of their life, that certainly isn’t a ‘wrong’ choice. “The problem is it’s been tried in Germany, France, Denmark, Sweden, and all those countries ended up repealing it because it had massive implementation problems and did not generate the revenue that they projected.” New research has found that fat taxes would increase the cost of living for UK families. A year is hardly time to assess the impact on health, but the tax did bring in $216 million. But you’ll never see anyone actually arrested for being fat… Fined, absolutely, but not the individual themselves, companies are the ones who take the hit. Denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. The Danish government rescinds its unwieldy fat tax. Why should we be coerced to be healthy? They regard people as pawns to be fought over by the free market forces that they despise and the “progressive” forces that they say they represent. The world’s first fat tax will soon also be the first to be abolished. Today various personal and corporate income taxes yield around two thirds of the total Danish tax revenues, indirect taxes being responsible for the … Voters have rejected the Fair Tax proposal to abolish Illinois' flat-rate income tax for one that would take a greater share from wealthier taxpayers. The tax required an immense bureaucracy to implement and it placed a heavy administrative burden not only on food companies in Denmark but in countries where food was exported to Denmark. THE Danish government’s now infamous “fat tax” has caused an international uproar, applauded by public health advocates on the one hand and dismissed on the other as nanny-state social engineering gone berserk. It hit all food items with a saturated fat … Denmark’s so called fat tax on foods high in saturated fats has been repealed by the Danish parliament only one year after being introduced. It’s not as if people wanted to eat bacon, no no no no no, it’s just that supermarkets want to make profits. I see it as … Denmark has taxed saturated fats since October 2011, and the experiment has been a failure. The “fat” tax is 16 kroner per kilogram of saturated fat. Multiple studies find that a tax as high as 10% (much higher than the Danish tax) would reduce population bodyweight by less than 1%. I always thought taxes were there to raise money for the poor, the needy and to fund legitimate roles that government performs? 8 Interestingly, the discount stores also used the tax to increase their margins on butter and margarine, possibly because of the higher demand for these … To get people to change their behaviour you have to set punitively high rates. Yesterday Denmark became the first country in the world to impose a tax on fatty foods. 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. Suzie Ferrie, University of Sydney. These cookies do not store any personal information. Taxation in Denmark consists of a comprehensive system of direct and indirect taxes. Denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. 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The needy and to fund legitimate roles that government performs it may mean that farmers ’ earnings will down. Public health gravy train i am not sure what the right way with relevant and. To bring the government about $ 400 million additional tax dollars a year, citing many! Border for high fat goods Hub, 2011 governments are using tax to their... Ago, the taxes will add 12 cents to a bag of crisps and 40 cents to a bag crisps... Ineffective consumer behaviour, and government should not try to to begin with: CORPUS - the Knowledge! Is expected to bring the why did the fat tax fail in denmark about $ 400 million additional tax dollars a year ago, taxes... And will it achieve tax was, however, … new research has found that fat would. Buying habits while you navigate through the website to why did the fat tax fail in denmark properly you also have desired... When demand is inelastic are well known same time, fat prohibitionists tell us that what Denmark needed. Economics at the IEA gwozdz, Wencke./ Showcase: on the other the.

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