Kerala Government imposes 14.5 % fat tax on Junk Food

In Indian Affairs
July 10, 2016

As a measure to tackle the increasing rate of obesity, Kerala is all set to introduce the first ever ‘fat tax’ to be levied on junk and fast food items. In his budget speech, Kerala’s Minister of Finance Dr. T.M. Thomas Issac proposed a tax of 14.5% on junk food including items like burgers, pizzas, sandwiches, doughnuts, tacos, etcetera.

The fat tax’s major concern is with issues related to public health more than revenue generation.

The tax will have an impact on popular fast-food chains like McDonalds, Dominos, Pizza Hut. However, Kerala will keep company with countries such as Denmark and Hungary that have similar taxes on foods that are high in fat and calorie content and low in nutrition.
The additional revenue of Rs 10 crore, collected from this tax, will, of course, boost the state’s health during what’s being reported as a “severe financial crisis”.
There is also a 5% tax on packaged products made out of wheat, maida, sooji and rava.
Kerala isn’t the first state to impose so-called Fat tax. In January 2016, Bihar government decided to impose a 13.5% value-added tax (VAT) on items such as salted peanuts, samosas, sweets and a few branded snacks.

Denmark was one such country to have imposed ‘fat tax’ on items like oil, butter, cheese, pizza, etc to tackle obesity.
UK has also been contemplating on the same since quite some time and decided to bring soda tax in effect by April 2018.
A Lancet study, released on April 6, said that India has seen a rise from 11.9 million patients in 1980 to 64.5 million in 2014, with double the prevalence among men and an 80% increase among women.

Additional Info about Kerala

Kerala ,a state in Southern India is known as a tropical paradise of waving palms and wide sandy beaches.
The tourism department of Kerala boasts that the state is God’s Own Country.
It is the most literate state in India,
t is also known for its backwaters, mountains, coconuts, spices and art forms like Kathakali and Mohini Attam

Bird Sanctuaries in Kerala