Why Denmark Gave Up On A Fat Tax

November 19, 2012 in Daily Bulletin, Signature

A year ago Denmark introduced a ‘fat-tax’ of 16 kroner (US$2.70) per kilogram of saturated fats in a product. The tax ministry has just announced that the tax is being revoked. What happened? Olga Khazan explained:

  • Danes were just crossing the border to indulge themselves at lower prices; thus hurting local Danish businesses.
  • Moreover businesses had to pay additional administrative costs to comply with the requirements of the tax law.
  • A proposed tax on sugar has also been cancelled due to concerns that it would have similar effects.
  • Hungary, France, and the United Kingdom should take note – they too are considering implementing similar policies.

Read more about how Danish obesity rates compare with American ones, and why the problem might have been that the tax was too low over here.

Source: The Washington Post