Fat tax

The fat tax is a tax levied in some countries on certain fats in foods .

Denmark

The fat tax was in force in Denmark from October 1, 2011 to December 31, 2012.

Legislative process

The tax was the first of its kind in the world and was passed by the Folketing , the Danish parliament, with a large majority on March 17, 2011 . All parties except the Liberal Alliance voted for the bill; the members of the Enhedslisten abstained.

Content and debate

For every kilogram of saturated fatty acids there is 16 Danish kroner (approx. 2.15 euros) in fat tax. Foods with a saturated fatty acid content of over 2.3 percent are affected. The tax is also levied on goods imported into Denmark. In contrast, the tax does not apply to products that Denmark exports abroad. Some foods such as whole milk or fish are tax exempt. For butter , whipped cream or poultry , however, the tax must be paid. The provisions are regulated by the “Law on the Taxation of Saturated Fats in Certain Foods” (Lov om afgift af mættet fedt i visse fødevarer).

The levying of the tax means that half a pound of butter or half a liter of whipped cream is 30 to 35 cents or just under 20 percent more expensive. According to its proponents, the aim of the tax is above all to change the behavior of the population. It is supposed to encourage the Danes to eat more healthily. In addition, according to calculations by Tax Minister Troels Lund Poulsen , the tax provides additional government income of 1.5 billion crowns (approx. 200 million euros) annually.

The passage of the law was preceded by a passionate debate in Denmark. The Danish food industry feared that many consumers would buy poor quality goods or those from abroad in the future. This would put jobs in Denmark at risk. The largest Danish producer of dairy products, Arla Foods , was expecting a drop in sales of 125 million kroner. The Danish Industry Association complained about an increase in bureaucracy in connection with the fat tax , as not only the fat in the food itself had to be determined, but also the fat used in the preparation, such as deep-frying oil . Nutrition experts criticized the fact that foods are now also becoming more expensive that are recommended to be consumed despite their high fat content, such as nuts or olive oil . The association of margarine producers designated the exemptions for z. B. Whole milk as "arbitrary" and reported the Danish state to the EU Commission for violating competition legislation and hindering the free movement of goods.

Effects and abolition

The tax led to an increase in consumer prices, high administrative costs for producers and a threat to jobs in Denmark. An increase in shopping tourism led to an outflow of purchasing power. Many Danes buy their groceries at the weekend in German shopping centers near the Danish border, such as Scandinavian Park in Handewitt , or the Grenzhandelsmeile on Industrieweg in Harrislee , as well as from the numerous smaller border traders. These border traders have specialized in the affluent Danish border tourists through Danish-speaking staff and other measures. Tax Minister Holger Nielsen declared in November 2012 that the Danish government wanted to abolish the fat tax for these reasons.

On January 1, 2013, the fat tax was abolished again.