Fat Tax: Denmark The First Country to Tax Purchase of Fatty Foods
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Fat Tax: Denmark The First Country to Tax Purchase of Fatty Foods

Copenhagen : Denmark | Oct 03, 2011 at 1:10 PM PDT
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Danes Introduce Tax On Fatty Foods

October 3, 2011--

In an effort to reduce heart disease, Denmark instituted a tax starting October 1st on foods containing saturated fat.

The price of butter increased by 50 cents, a bag of potato chips 12 cents and ground beef 20 cents. The formula for the tax levy is 2.3 percent fat content would equal $1.60 per pound assessment for saturated fat.

Dr. Jorgen Dejgard Jensen of Copenhagen University told Global Post, “We will gain some very useful insights during the next year or two about whether it is changing consumption patterns, and also regarding the feasibility of implementing such a tax.”

Danish retailers have already started hoarding fatty foods ahead of the start date on Oct. 1. Mogens Nielsen, chairman of Dragsaek Group, one of the country’s largest margarine producers, reporting 500 metric tons in extra orders this month.

Denmark already taxes sugar at 66 cents per kilogram in cinnamon pastries as well as a tax on ice cream at 15 cents a liter.

But if the new tax succeeds in cutting the amount of saturated fats Danes consume by one-tenth, as is hoped, other countries are certain to take notice, not least the United States, where more than one in three adults is clinically obese.

Global Reactions

Mike Rayner, Director of Oxford University’s Health Promotion Research Group, argues more food taxes are inevitable. He has long campaigned for taxes on unhealthy foods in the U.K., which has Europe’s highest obesity rates.

“I think we're going to have them in Britain, because the obesity crisis in the U.K. is such that we need to take more action.”

The Organization for Economic Co-operation and Development has already called on Britain to introduce such a tax, and last year, the Food Standards Agency was reported to be considering launching a consultation on a fat tax in Britain, although later denied it had reached a decision on the issue, according to the Daily Mail.

The National Obesity Observatory estimates that 23 per cent of heart disease deaths and 6 per cent of cancer deaths can be attributed to excess weight.

There is also growing link between obesity and depression: the risk of it developing is 55 per cent greater in obese patients.

Arguments Against “Fat Tax”

The most outstanding argument is it would disproportionately affect the poor who are more likely to buy less expensive, fatty foods including convenience and processed foods.


In Britain a study by the Institute of Fiscal Studies in 2004 concluded that a tax similar to that now imposed in Denmark would cost the poorest 2 per cent of the population 0.7 per cent of their income.

For the richest 10 per cent of the population, on the other hand, the impact would be minimal.

Hungary has also introduced a tax on all packaged foods containing unhealthy levels of sugar, salt, and carbohydrates, as well as products containing certain amounts of caffeine.

Health experts believe such taxes will encourage food manufacturers to make products that have a reduced fat content with the possibility that consumers won’t even notice the difference in taste — and they might be far healthier.

Would You Support A Similar Tax in the U.S.?

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Fat Tax
Denmark is the first country to declare a tax on foods with 2.3 percent saturated fats.
Dava Castillo is based in Clearlake, California, United States of America, and is an Anchor for Allvoices.
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Posted By JacqueeT JacqueeT | over 1 year ago
This seems an innovative tax, yet what about taxes on fast food -- that takes the most fattening shortcuts to deliver products? And, is Denmark simply falling into the politics of politicians greasing palms over new taxes?
Posted By DavaCastillo Dava Castillo | over 1 year ago
Taxes like the Denmark tax would be assessed by individual states in the U.S..

According to a recent Washington Post article, legislatures in at least 25 states are currently debating more than 140 bills aimed at curbing obesity.

New state laws currently under consideration would restrict the sale of soda and candy in public schools, require fast-food chains to post fat and sugar content directly on all menu boards, and even attempt to tax fat away.

Six bills proposed by New York State Assemblyman Felix Ortiz (D) would slap hefty taxes on not only fatty foods, "but also modern icons of sedentary living -- movie tickets, video games and DVD rentals." Ortiz estimates his tax laws would haul in over $50 million a year, which New York could use to fund public exercise and nutrition programs.
Reply By northsunm32 northsunm32 | over 1 year ago
Perhaps these SIN taxes are being used as revenue generators for state governments. They can be sold as virtuous taxes because of their possible beneficial collateral effects. Cigarette taxes and liquor taxes are also cash cows at least in Canada.
Reply By SarahSofiaGranborg SarahSofiaGranborg | over 1 year ago
Absolutely true! It's a cash cow and nothing else! Well, also another silly idea one party can use to score some points on one day before they have to pass another law that deals with the damage. The poor... well interesting figures that people have about DK who don't live here! The problem is taxes are so high in DK for those who don't have a business that they are already paying a minimum of basic taxes. Plus you have 25% VAT, plus the taxes you have mentioned, but really there are many, many more taxes, also taxing healthy products multiple times and things which are good for you and the environment. This means that a working class person can really only buy the cheapest trash for food and naturally fruit and veggies is where they save. They will not quit their cigarettes and they will also not quit their drugs and their alcohol and meat-consumption because they need the dope to keep them going. otherwise they would just feel totally hopeless.
10% of the riches people in DK... who would that be? those who live in 10+ million-dollar homes, along the coast, north of Copenhagen? Don't worry they aren't really rich, they've just taken such huge loans to make it look as if and it will only last a couple of years anyway - until thy get investigated or their company crashes.
Just for the record, I'm actually pretty much into natural health but you don't get people to live healthier by making it impossible to buy enough food! Two things will happen: the poor will buy more junk, because that's all they can afford, since healthier fats, like cold pressed organic oils etc. have just become even more expensive and they will shop in Germany instead. We eat a lot of fruit and veggies, probably something like 3 kg per person a day and naturally that amounts to a lot of stuff I buy in the supermarkets. So last weekend some one asked me again: what on earth do you do with all that stuff and I told them we just eat it raw, it's healthy fast food. But then the others in the cue said: "Look how much she pays, she can afford it!" And it's gonna be even more like this in the future. The poor will be even less able to afford healthy food and healthy fats and they will definitely not spend it on vegetables and fruit!
Reply By JacqueeT JacqueeT | over 1 year ago
Yes, unfortunately these taxes turn into cash cows for politicians.
Posted By northsunm32 northsunm32 | over 1 year ago
Thanks for the report. I also posted on this but we have somewhat different information. Your point about the poor being hurt most is certainly relevant. Denmark also has a tax on foods with high trans fats and foods with high sugar content. It seems that the percentage of Danes that are obese is very much lower than in Britain. I wonder how it compares with the U.S. I find it somewhat surprising the tax could be sold politically since Denmark has a large dairy industry and the tax will affect cheese, butter, and cream.
Posted By DavaCastillo Dava Castillo | over 1 year ago
North,

Denmark is known for their pastries which are high in fat, so go figure on the dairy angle.

In one of the articles I read, Britain has a high obesity rate, but I don't know how it compares with the U.S., probably about the same.
Reply By SarahSofiaGranborg SarahSofiaGranborg | over 1 year ago
@Ken and Dava:
True DK is known for their pastries, but it isn't really something you can eat. Last time I counted one had 11 E-numbers! Plus it really does taste like sh...! Seriously. Nothing you wanna put into your mouth on free will. But exactly those pastries are a very good example of how insane this tax is. In the olden days they were made of butter, flour and sugar and some nuts. And that's how they got famous. They tasted great and weren't too unhealthy. But now butter is too expensive, so they use all kind of trash-products as fat-substitute and add many chemicals. Even before the tax was in place bakeries were closing down because products tasted too trashy and were far too expensive. Now it's gonna be even worse. They will meet the demand of the working class and actually also of the middle class by producing things in an even cheaper and more unhealthy manner. Danish cookies and candy is anyway already almost uneatable due to the lousy ingredients they generally use - even before the 1st of October. So naturally people buy their candy in Germany and Sweden instead. It's a huge business and it will only get bigger.
Re obesity: really don't know if the Brits are fatter than the Danes. I have British family and it seems I see more Danes who are overweight. But one thing is true, the Brits is much more unhealthy and very few veggies and much less fruit than the Danes.
They seem to think over-boiled veggies and chutney make good enough vitamins etc.!
Plus I know many, many people who are slim or even skinny who are more likely to die of cancer or a heart attack than those who are overweight. Because the real problem is not so much how much people weigh - even though it's of course also relevant - but the real issue is what do they eat. Do they have a basic diet which consists of everything that the body needs or do they just stuff up junk because it's fast, cheap and a stimulant? The real problem is that most people are completely starving their bodies of nutrients and almost no one is still eating a properly. They're either on some fancy hip diet or they're stuffing themselves with fast food. And it doesn't matter if people are fat or skinny, they're both starving their bodies! So what they really need is a healthy version of good old-fashioned country-cooking - with healthy fat acids and lots of fruit and veggies and the opportunity to eat 3 meals a day - peacefully - and at least 2 of them together with the family.
Did you know that most people with mental problems have hardly ever had a proper meal? I know it sounds provoking and is an unusual thought for many... but try and check out what kids with ADHD eat or what people who have severe mental problems have eaten all their life and how often they actually were able to enjoy a home-cooked meal - in peaceful conditions with their family!
So making it more difficult for people to eat and to eat well and to enjoy their food is actually a huge issue and will effect the country very badly.
Re how it could be sold politically: same crap as always, they need to find more money and run out of things to tax since everything is already taxed multiple times. So they do this for a little while until they realize the damage is too great and then they find a couple of other things to tax to deal with that damage until they eventually will have to deal with an even greater problem... but that's not what a politician cares about. All they care about is how they survive the day best - in the most noisy way!
Re how this will effect export of dairy products... the tax will probably not apply when the goods are exported. After all they need to sell it cheap to Germany, so the Danes can all cross the border and shop there instead!
Re how Britain's obesity rate relates to the US: people in the Americas are unfortunately much more overweight than the Brits!
Posted By Deepizzaguy George Vieto | over 1 year ago
And I thought Americans have to put up with sin taxes.
Posted By Adebanjos Adebanjos | over 1 year ago
well compiled report thanks for sharing it...rated up.
Posted By catspirit catspirit | over 1 year ago
Excellent report - bringing to light the people most affected by this tax was sheer genius. Write on!
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