Denmark repeals ‘fat tax’

November 14, 2012

According to The New York Times, after just one year, lawyers in Denmark have repealed the “fat tax” that was charged on foods high in saturated fats, citing a harmful effect on businesses and consumer buying power. In a related decision, the Danish tax ministry said it was canceling plans for a sugar tax.

“The fat tax is one of the most criticized we had in a long time,” said Mette Gjerskov, Denmark’s Minister of Food, Agriculture, and Fisheries. “Now we have to try to improve public health by other means.”

Danish retailers complained that consumers simply went to Sweden and Germany, where prices are lower, to buy butter and ice cream. Still, the tax raised $216 million in new revenue. To offset the loss of that money, the Legislature plans a small increase in income taxes and the elimination of some deductions.

The New York Times article