Denmark to scrap world's first fat tax
"The fat tax and the extension of the chocolate tax - the so-called sugar tax - has been criticised for increasing prices for consumers, increasing companies' administrative costs and putting Danish jobs at risk," the Danish tax ministry said in a statement.
"At the same time it is believed that the fat tax has, to a lesser extent, contributed to Danes travelling across the border to make purchases.
"Against this background, the government and the (far-left) Red Green Party have agreed to abolish the fat tax and cancel the planned sugar tax."
Businesses call fat tax a failure on all fronts
Levy costs millions of kroner and has not resulted in consumers making healthier choices, say food producers. Finance minister Bjarne Corydon (Socialdemokraterne) is not opposed to trimming the fat tax, but the lost revenue will have to be made up
Denmark's surcharge on the fat content of foods has cost businesses 200 million kroner since it was implemented last October, according to Dansk Erhverv, a business advocacy group. The tax has been expensive,” chamber spokesperson Lotte Engbæk Larsen told Jyllands-Posten newspaper. “Businesses have had to absorb the costs of administration, set up new IT systems and explain it all to customers and suppliers.”
Larsen said that the red tape was the only thing to come from the levy, since it did not encourage customers to pick less fatty food.
“There have been absolutely no health benefits gained from this tax,” said Ole Linnet Juul, of DI Fødevarer, a food industry advocacy group.
Cheers, Alan, T2, Australia
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