On denmarks fat tax food politics by marion nestle. The scientific case for denmark s fat tax was made by the countrys prevention commission, which claimed that the policy would give danes an extra 3,800 years of life or, more prosaically, an extra five and a half days per person. Fat taxes have become part of the policy response to obesity in a number of countries. Aug 26, 2015 in 2011 denmark introduced a tax on saturated fat in food products, the first country in the world to do so.
With effect from october 2011 denmark was the first country to introduce a tax on saturated fat. The danish government will introduce a tax of 16 dkk around. 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 many other countries citizens pay less tax than in denmark, but in return they have to pay to go to school, to the hospital, the doctors, etc. The graph explanation the fat tax was introduced on october 2011 by denmark to limit the number of fatty foods the people of denmark intake.
Oct 10, 2011 the danish government has introduced a new tax based on the fat content of food denmark has imposed a fat tax on fatty foods in an effort to convince danes to eat healthier. Nov 11, 2012 denmark to scrap worlds first fat tax denmark s government has confirmed its plans to scrap a tax implemented on saturated fats in foods, less than a year after bringing in the policy. Why fat taxes wont make us thin journal of public health. Denmark has introduced a fat tax in order to fight obesity and to combat heart disease and diabetes. Learning english words in the news denmarks fat tax. Today various personal and corporate income taxes yield around two thirds of the total danish tax revenues. Denmark has become the first country in the world to introduce a tax on foods seen as being harmful to health.
Nov 10, 2012 the measure, introduced a little over a year ago, was believed to be the worlds first socalled fat tax. Assessment of the impact of a public health product tax. The top 50 taxpaying companies paid 90% of the total tax revenue, and the proportion remained similar over the years. The danish tax on saturated fat the tax on saturated fat was part of a larger tax reform taking place in denmark in 2010. Effects of healthrelated food taxes and subsidies on. The rise and fall of the danish fat tax academy of social sciences. Denmark to scrap worlds first fat tax abc news australian. However a similar uk study that modelled the potential health outcomes of four healthrelated food tax and subsidy regimens for the uk reported that two taxation scenarios a saturated fat tax and a tax on less healthy foods as defined by a nutrient profiling modelboth 17. In this context, denmarks fat tax can offer valuable evidence despite the fact that it was only in effect for 15 months. Those already implemented include the us tax on sweetened drinks, denmark s fat tax, hungarys junk food tax, and frances tax on sweetened drinks. Nov 10, 2012 denmark said saturday it would 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. Denmark has taxed saturated fats since october 2011, and the experiment has been a failure.
Pdf obesity, fat taxes and their effects on consumers. A proposed sugar tax that was meant to be introduced in 20 has also been. A related idea is to tax foods that are linked to increased risk of. Denmark admits its fat tax failure adam smith institute. In 2011 denmark introduced a tax on saturated fat in food products, the first country in the world to do so. If an expat living in denmark does qualify they will need to file a completed form 8938 with along with their us tax return. To date, the only other scientific study examining the danish fat tax jensen and smed, 20 found that the sale of butter, butter blends, margarine and oils decreased by 1015% during the first nine months of the fat tax. Substituting polyunsaturated fat for saturated fat. Denmark was the first country in the world to do this. The declared aim of the tax is to reduce the consumption of saturated fat among the danish population in order to decrease the prevalence of diet. Other measures under way include plans by romania, finland, and the united kingdom to initiate a fat tax and perus plan to tax junk food 50, 51, 52. Fat tax introduced in denmark australian food history timeline. Oct 01, 2011 denmark saturday became the first country in the world to impose a fat tax after a week in which consumers hoarded butter, pizza, meat and milk to avoid the immediate effects.
The government also wants to improve life expectancy and the health of the danish people. In dollars, the taxes will add 12 cents to a bag of crisps and 40 cents to the price of a burger. 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. Denmarks fat tax remains the leading example of an ambitious. Therefore, we derived the age and sexspecific sfa consumption change that was observed in denmark after the introduction of a fat tax 41, corresponding to a sfa intake reduction ranging from 0. This article appeared in the europe section of the print edition under the headline a fat chance. Other countries are playing me too or waiting to see the results of denmarks experiment. The effects of the danish saturated fat tax on food and. Taxation in denmark consists of a comprehensive system of direct and indirect taxes. Nov 11, 2012 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. It pushed danes to shop in other countries for fattier foods. For example a tax on saturated fat was imposed in denmark in 2011 and then later removed in 2012.
There will be an extra charge on items that contain more than 2. The government of denmark main aim was to increase the prices of fast food by increasing the legal price floor, and the minimum price sellers can sell their fast food products for hoping this would reduce the demand and shift the demand curve to the left. Nov, 2012 denmark will repeal its fat tax after it showed an unintended consequence. Denmark scraps its infamous fat tax after only one year. Danes will now face higher income taxes to make up for the loss of the fat tax.
Butter, potato chips, ground beef and pork are among the products that are to be taxed. The danish fat taxeffects on consumption patterns and risk. Denmark scraps its infamous fat tax after only one year denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. Oct 07, 2011 denmark is the first country to introduce a fat tax on foods with high saturated fat content. Denmark scraps worlds first fat tax the washington post. Why danes happily pay high rates of taxes best countries. 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. The danish government rescinds its unwieldy fat tax. The objective of the present paper is to investigate the effects of the tax on consumers intake of saturated fat within three different types of food product group. The economic effects of the fat tax were almost invariably negative. Denmarks lawmakers thought they had a winwin through a tax on food with more than 2.
Denmarks fat tax fiasco institute of economic affairs. At a national level, similar measures have also been. 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. This initiative to combat heart disease and obesity came despite the fact that only. A fat tax aims to discourage unhealthy diets and offset the economic costs of obesity a fat tax aims to decrease the consumption of foods that are linked to obesity. This study modelled the impacts of a revenueneutral policy in which a tax based on saturated fat content is combined with a subsidy on fruit and vegetables.
The fat tax is 16 kroner per kilogram of saturated fat. A public health food tax on packaged products with high sugar, saturated fat or salt levels was introduced in september 2011 in hungary and a tax on saturated fats was introduced in october 2011 in denmark. Effects of the danish saturated fat tax on the demand for. These kinds of studies may provide the most convincing.
Many danes switched to cheaper brands or went over the border to sweden and germany to do their shopping. The effects of the danish saturated fat tax on food and nutrient intake and modelled health outcomes. France introduced a targeted sugar tax on soft drinks in 2012. Apr, 2016 the effects of the danish saturated fat tax on food and nutrient intake and modelled health outcomes. The official aim of this reform was to replace part of denmarks relatively high income tax, with marginal rates varying from 42.
The overall aim of this reform was to reduce the pressure of income taxation rates for all people actively participating in the labour market and to finance this by, among other things, increased. Denmarks food taxes a fat chance europe the economist. Jan 20, 2016 denmark has one of the highest tax rates in the world, which is often mentioned as one of the biggest objections against the danish welfare model. The danish government introduced a fat tax surcharge on foods containing more than 2. What the world can learn from denmarks failed fat tax the. Tax on four product groups accounted for 90% of the total phpt revenue and, in 2014, for half the total revenue generated on prepackaged sugarsweetened products, 16%. Denmark has its own minister of taxation, ministry of taxation and its own taxation laws. 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. Ana kasparian and cenk uygur discuss on the young turks. After being voted for by an overwhelming majority of mps, the tax on saturated fat led to inflation, crossborder shopping, job losses and.
Oct 02, 2011 danes who go shopping today will pay an extra 25p on a pack of butter and 8p on a packet of crisps, as the new tax on foods which contain more than 2. Modelling the effect of the changes in diet on health outcomes suggests that the saturated fat tax made a positive, but minor, contribution to public health in denmark. It is essential that americans planning to reside or living in denmark understand the key tax issues in the usa and denmark. In bringing in its fat tax, the danish government also wanted to raise revenue, reduce costs associated with obesityrelated diseases, and increase health and longevity. Whether these amounts will discourage purchases remains to be seen. More recently, finland reintroduced an earlier soft drink tax in 2011, while hungary taxes sugary drinks as part of its 2011 public health product tax, which covers all food products with unhealthy levels of sugar. Oct 04, 2011 and earlier this week, with just a little more fanfare, denmark instituted an excise tax on foods high in saturated fat. The objective of this paper is to make an effect assessment of this tax for some of the product categories most. This means that the higher your income, the more taxes you have to pay. After being voted for by an overwhelming majority of mps, the tax on saturated fat led to the short tale of denmark s fat tax can be easily told. Introduction this briefing note looks at the potential for the introduction of a fat tax into the uk in an effort to reduce the growing prevalence of obesity in britain. If shoppers still purchased butter, cheese, and other fatladen goodies like pizza, then the country got the.
Denmark introduced a tax on saturated fat in food products with effect from. What the world can learn from denmarks failed fat tax. Nov 12, 2012 the worlds first fat tax will soon also be the first to be abolished. The fat tax had a very limited impact on the consumption of. Denmarks fat tax was a failure but revisionists are. Denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. Fat tax in denmark is repealed after criticism the new. Denmark began taxing soft drinks and juices in the 1930s.