Fat Tax
The link between the consumption of high-fat foods and obesity is well established. Mounting concern about the increasing incidence of obesity in many countries has sparked debate about the merit of an explicit ‘fat tax’, aimed at either taxing foods according to their fat content or, more practically, taxing certain foods with a high fat content.
Discuss the implications and effectiveness of a fat tax for reducing the consumption of high-fat foods?
There are many implications and effectiveness of a fat tax an example of this is the ‘fat tax’ has now been enforced by some airlines (such as Samoa Air). ‘Fat tax’ is a dynamic efficiency as it is a new innovation adopted by the company. This might cause the consumer’s demand for high-fat foods to decrease and the price of high-fat foods will decrease. If you take it in the other way the demand for low-fat food will increase at the sometime the price of low-fat food will increase (thus we can see price increase in fruits and vegetables and the quantity can decrease). But ‘fat tax’ can be taken as discrimination towards the obese community. Plus there are many different causes of obesity and people have number of reasons for their conditions by doing this the company is going against the consumer sovereignty as the company is discrimination and is not fair to the obesed community, therefore the company can lose loyal consumers and even the firm can go out of business . However the survey by the global travels show that 59% (consisted of 1000 adults) of the majority, international travellers were happy with enforcing ‘fat tax’ and 41% were saying that it is “unfair and discriminatory”. Nevertheless business have no rights to humiliate they consumer be discriminating they obesity and they consumer loyalty. This term ‘fat tax’ can back fire on the companies as it can make the demands and quality of that practical goods and service to decline due to discrimination towards obese society.
Reference:
'Fat tax'
Discuss the implications and effectiveness of a fat tax for reducing the consumption of high-fat foods?
There are many implications and effectiveness of a fat tax an example of this is the ‘fat tax’ has now been enforced by some airlines (such as Samoa Air). ‘Fat tax’ is a dynamic efficiency as it is a new innovation adopted by the company. This might cause the consumer’s demand for high-fat foods to decrease and the price of high-fat foods will decrease. If you take it in the other way the demand for low-fat food will increase at the sometime the price of low-fat food will increase (thus we can see price increase in fruits and vegetables and the quantity can decrease). But ‘fat tax’ can be taken as discrimination towards the obese community. Plus there are many different causes of obesity and people have number of reasons for their conditions by doing this the company is going against the consumer sovereignty as the company is discrimination and is not fair to the obesed community, therefore the company can lose loyal consumers and even the firm can go out of business . However the survey by the global travels show that 59% (consisted of 1000 adults) of the majority, international travellers were happy with enforcing ‘fat tax’ and 41% were saying that it is “unfair and discriminatory”. Nevertheless business have no rights to humiliate they consumer be discriminating they obesity and they consumer loyalty. This term ‘fat tax’ can back fire on the companies as it can make the demands and quality of that practical goods and service to decline due to discrimination towards obese society.
Reference:
'Fat tax'