Fat Tax is a bad idea

By Research Desk
about 8 years ago

 

The Kerala Govt has decided to impose a “Fat Tax”. This is a tax applicable on all food that makes you fat. The state Budget on Friday proposed a 14.5% tax on junk food such as pizzas, burgers and doughnuts sold in upscale restaurants.

Now this is a very broad definition – there are so many food which could make one fat. Right from the sweets, deep fried savouries, banana chips, ghee dosa and so many other quick snacks – all of them are fat food. Yet, what it now looks like is that sweets and these other Indian quick junk food does not come under the category of “fat”. It seems more and more like Kerala is targeting the MNCs – McDonald, Pizza chains, KFC, donuts and all things western. So is this “Fat Tax” imposed selectively on MNCs, which is a typical communist trait?

This kind of selective taxing is not right. As such in Kerala, consumption of these foods is not as high as in the metros so the impact might be too much. But what if this spreads all over? The MNCs are worried because as such their business is currently not doing too well. What about other Indian fat food? That the Kerala Govt is silent. In fact, Bihar went the other way – it levied a 13.5% tax on local snacks, including samosas and kachoris.  Obviously, all tax will always be passed on to the consumers and in turn, hitting the industry.

More than tax, we need to educate people about what harm these foods can cause. Anything in excess is harmful – be it love or food. Thus controlling this temptation should be an internal, personal process and not imposed by the Govt.

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