JOIN USThe Kerala government’s proposal to impose a ‘fat tax’ on selected food items, as a part of its 2016-17 budget, has been welcomed widely. It has also invited some criticism, not for its merit but for its selectiveness and limited utility. The food items which will attract the tax are mainly burgers, pizzas, sandwiches, doughnuts, pasta and like which are sold by multinational outlets and branded restaurants. The tax impost is quite high at 14.5% and it will substantially push up the prices of these food items. The state intends to earn Rs 10 crore from the tax but the aim is not just the revenue. The government expects that the high price will disincentivise the consumption of fat-heavy food, especially by students and youngsters. The popularity of what is called junk food has increased in the state, as elsewhere in the country, in recent years. It has penetrated even to the villages.
It is for the first time that a state in the country has imposed such a tax and so it has attracted attention and debate. There may be a view that it curbs the
‘right to eat’ and is restrictive of the eating habits of people. But the proposal has a social value and may be compared with the attempts made by governments
to reduce the consumption of alcohol and tobacco through the imposition of high taxes. There is also the question why only some food items are targeted. Sugar-high colas are not good for health. There are also other food items like ghee rice which have high fat content and fried items like vada which are not good. It is difficult to bring all such food within the ambit of a special and deterrent tax net as most them are produced and sold in the unorganised sector. But efforts to disincentivise their consumption are needed.
The love of junk food is increasing with the spread of fast food culture. This is because of lifestyle shifts and social and economic changes. The increasing incidence of obesity and diseases like diabetes is partly attributed to the changing food habits. Kerala has a high obesity incidence rate. Students and youngsters are especially attracted to junk food. They are also the sections who should be actively weaned away from the consumption of such food. But there are doubts whether high prices are good enough disincentives. Many countries have tried the high taxation method to discourage consumption of unhealthy food but the results have been mixed. Creation of public awareness about the need to eat healthy food is the best method.