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Second Indian State Considers 14.5% ‘Fat Tax’

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Following Kerala’s example, another Indian state, Gujarat, aims to impose a “fat tax” on junk food.

In an attempt to promote healthy lifestyles and to raise obesity awareness, the government of Gujarat is considering a 14.5% junk food tax.

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"This idea can be adopted in the state, as we have high consumption of junk and unhealthy food. The 'fat tax' can be used as a tool to raise awareness of the harmful effects of junk food," an official from the Gujarat department of finance told the Times of India. "The government will study Kerala's model and others and decide whether or not to levy this in the next budget. The goods and services tax will likely come into force next year, so we may have to have a special provision for the 'fat tax'. It is possible under the current tax structure. We will examine all these aspects soon."

Finance Minister of Kerala Thomas Isaac on July 8 announced imposition of the "fat tax" on consumers eating pizza, burgers and other fast food served in branded restaurants which are considered to be "detrimental" to consumption, while presenting the first budget of the state's newly-elected Left Democratic Front Government.

In October 2011, Denmark became the first country to introduce a tax on saturated fat. The tax was levied on all food that contained more than 2.3% fat, which included milk, butter, cheese, oil, and meat, frozen pizzas and other processed foods.

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