Australia Fat Tax Essay

Australia is now considered as one of the most obese countries in the world, with 63% of Australians being either obese or overweight1. To counteract this, there has been speculation over whether to introduce a fat tax. This tax would specifically target foods high in fats and sugars, such as; soft drinks and deep fried takeaways. The logic behind such a tax is that an increase in price would lead to decrease of demand similar to that of the alcohol and cigarette taxes respectively, in order to improve our country’s health as a whole. The advantages and disadvantages of the fat tax can potentially help foresee the effect on the Australian economy. The effectiveness and consequences are also aided by the views gained from the implementation
In October 2011 Denmark introduced a tax on items with over 2.3% saturated fat . It was then quickly abolished in November 2012 as it didn’t change Danish eating habits. It had a negative impact on the Danish economy as “48% of Danes were travelling across the borders to Sweden and Germany in order to purchase junk food”3. Butchers also caught the full blow of the tax opposed to large supermarket chains as “supermarkets could keep meat prices down by spreading the tax across other goods, but small butchers sold only meat. This meant higher prices and lower
It is a intrusion on consumers right of purchasing. Furthermore, the price increase would not only effect the overweight and obese, but also healthy individuals who partake in the consumption of junk food. Instead of punishing the overweight, the government could reward the healthy with things such as “tax breaks on gym memberships” . Moreover, the possibility that the revenue from the fat tax would not go to improving the health system or subsidising healthy food so it is a cheaper