This week Denmark added an additional tax on foods containing more than 2.3% saturated fats, which includes butter, meat, milk, cheese, oil and processed foods. Denmark’s fat tax remains the leading example of an ambitious anti-obesity policy being tested in the real world. On 1 October 2011, Denmark got a 'fat tax' in order to battle unhealthy lifestyles. Overall, FDB’s retail businesses sold six tonnes less of fat during those months. “The politicians have finally realised that our and other people’s predictions have come true. The vice president of the Danish Grocers’ Trade Organisation (DSK) Claus Bøgelund Nielsen said his members had experienced both a decline in revenues in their shops and a lot of unnecessary administrative work. “That was a burden without comparison and a huge problem,” Nielsen said. “With the new plan, we will keep jobs in Denmark, reduce border trade and the companies’ administrative costs. A proposed sugar tax that was meant to be introduced in 2013 has also been scrapped. Denmark has introduced what is believed to be the world's first fat tax - a surcharge on foods that are high in saturated fat. So there’s nothing new in those figures,” DSK’s vice president said. "The margarine sector believes that a systematic approach based on nutrition education and promotion of physical activity is needed to change consumer behaviour and reach balanced diets. Web. In October 2011, Denmark became the first country in the world to introduce a fat tax on meat, dairy products and cooking oil. I completely agree with Mr.Barron.The tax did not discuss anything about personal freedoms when the tax was established.We have the same problem of obesity in the US but it is not due to high fat intake alone,but mainly due to the high intake of carbs,ie.refined sugars in soda and desert foods.This was going to be addressed in the 2013 tax on sugar-based foods.What was really needed was a national tax deduction for people joining health clubs and weight loss enterprises that promoted optimal weight thru healthy eating.However,when looking at the cost of feeding a family it protein that is costly and carbs and fats that are relatively cheap.Therefore shifting people’s food buying even as early as children’s purchasing of foods in school.Laying the foundation to the way people go to the grocery store in later life.Denmark needs a multifaceted approach at dealing with obesity and repealing the the fat tax was not necessarily the answer. Only four years ago, 60% of the households said in the same survey that they “never” traded at the German border. Terms and Conditions We are more confident than ever in our role bridging media, policy, and the public. We need your support.Dear reader. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. Mr Cameron suggests that introducing a similar measure could be one way of tackling rising health costs and falling life expectancy among some groups of people. Earlier this month, Denmark's government imposed a new tax on foods with a high saturated fat content. The centre-left government now plans to abolish the tax in January 2013. The move will place a surcharge on foods high in saturated fat. “These taxes created big administrative costs. According to statistics from FDB, Denmark’s largest consumer goods retailer, Danes had started changing their eating habits because of the tax. Danish Grocers’ Trade Organisation (DSK). Nov 17th 2012. We are seeing record-breaking interest in our journalism as our pageviews have doubled in the last year. Denmark has brought in a "fat tax", Hungary a "junk food tax" and France a tax on all sweetened drinks. Denmark is scrapping its tax on foods that are high in saturated fat after it emerged people were travelling across the border to Germany in search of unhealthy snacks for less. Find your bookmarks in your Independent Premium section, under my profile. The Danish tax places a surcharge on foods that contain more that 2.3% saturated fat, including products such as butter, milk, cheese, pizza, meat and processed food. At the same time, readers support in the form of, recurring monthly financial contributions, provides continuous support for our work enabling us to innovate.Â, help us innovate for the future. For example, eating unhealthy foods contributes to the problem of obesity. The poll showed that 60% of Danish households had bought beer or soft drinks in Germany within the past year. Do you value EURACTIV’s reporting? This tax should have been opposed strictly on the grounds of personal freedom. Efficacité et Transparence des Acteurs Européens 1999-2018. A Public Health Food Tax on packaged products with high sugar, saturated fat or salt levels was introduced in September 2011 in Hungary and a tax on saturated fats was introduced in October 2011 in Denmark. By the time the fat tax was repealed 15 months later, it … Nielsen said he is pessimistic when it comes to the border trade in Germany, adding that it would probably continue at a high level as a new “rhythm” has been created. Butter, milk, cheese, pizza, meat, oil and processed food will all be subject to the levy. A tax of 16 crowns (€2.14) per kilo was applied to meat, dairy products and cooking oil which consist of more than 2.3% saturated fat to combat unhealthy lifestyles. The World Health Organisation released a report last month calling for governments around the world to introduce a tax on sugary drinks, and referred in glowing terms to Denmark's fat tax. Want to bookmark your favourite articles and stories to read or reference later? It implemented an across-the-board tax on all foods with a saturated fat content above 2.3 percent, with the hopes of reducing consumption of unhealthy foods. Peru intends to add levies to junk food and Ireland may also introduce such taxes… It has been widely criticised for hitting the weakest groups within the society. Denmark has since announced that it will abolish its hated fizzy drinks tax and is cutting beer duty for the same reason it dropped the fat tax – to ‘promote growth and employment’. Linnet Juul says the tax mechanism is very complex, involving tax rates on the percentage of fat used in making a product rather than the percentage that is in the end-product. Consumption of fatty foods have external costs on society. It usually affects citizens with lower income as food taxes increase prices and impacts the competitiveness of national enterprises, putting jobs at risk. The world’s first fat tax will soon also be the first to be abolished. And we thank you for your support. The Danish fat tax was unusual in being explicitly revenue-neutral from the outset. The Danish government rescinds its unwieldy fat tax. 21-02-2016 Between November 2011 and August 2012, consumers preferred buying meat with 6-8% fat instead of meat with 8-12% fat. 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Help us to continue providing free, independent news from the capitals of Europe. To be honest, I’m sad that I was right about this,” Nielsen told EURACTIV. | criticised for hitting the weakest groups within the society. Denmark scraps fat tax in another Big Food victory (2012). “We have witnessed the same trend with milk where people now drink skimmed milk instead of whole milk. For example, they would try to explain a lasagna maker in Italy that the tax only applied to saturated fat and only special types of saturated fat, and then leave it up to the lasagna producer to figure out how much of the lasagna would be hit by the fat tax. October 6, 2011 August 21, 2016 Zoë 22 Comments Butter, Denmark, dietary fat, eat real food, essential fats, fat tax, Obesity, olive oil, public health dietary advice, saturated fat, unsaturated fat. The tax was approved by large majority in a parliament in March as a move to help increase the average life expectancy of Danes. Before its introduction the tax was debated worldwide, as Denmark was the first country in the world to introduce a tax on saturated fat. The tax is based on wrong information about fats. Nielsen said that because of the fat tax, DSK members who imported food products from other countries had spent many hours trying to explain foreign food producers how the Danish fat tax worked. Research has also shown that during the first three months after the tax was introduced, the sale of butter, oil and margarine fell 10-20% in Denmark. Read our full mailing list consent terms here, "Higher fees on sugar, fat and tobacco is an important step on the way toward a higher average life expectancy in Denmark," health minister Jakob Axel Nielsen said when he introduced the idea in 2009, because "saturated fats can cause cardiovascular disease and cancer.". These oils are also independently linked to cardiovascular disease, diabetes and cancer. … Your recurring monthly financial contributions help us innovate for the future. EURACTIV MEDIA NETWORK BV. This information should not be behind a paywall, and we remain committed to providing our content for free. Social cost. It is interesting that there is no mention in this article about personal freedom. AP. The Danish "fat tax" was presented as part of a tax reform package in 2009.1 Following a number of amendments, it was finally adopted in March 2011 and took effect on October 1 of the same year. We know our readers value our reporting, and the outpouring of support we have received since the beginning of the crisis shows that our readers are willing to step up for the journalism that they trust and value. Want an ad-free experience?Subscribe to Independent Premium. “The change in behaviour which has happened among the consumers will unfortunately probably continue in the long run even when the Danish groceries adjust to the new lower prices,” DSK’s vice president said. 14-11-2012 About KiMs. Web. The previous right-wing government introduced the fat tax to limit the population’s intake of fatty foods. This report on Organizational Change Project “Fat Tax” in Denmark was written and submitted by your fellow student. This is good,” said Margrethe Vestager, minister for Economic Affairs and the Interior. International Margarine Association of the Countries of Europe said in a statement: "Introducing taxes on certain nutrients or foods has never been recognised by international organisations, such as the WHO, the OECD and the European Commission, as a panacea for public health. Predictably enough, it was the poor who were clobbered hardest. COPENHAGEN . Start your Independent Premium subscription today. ), Comments Print Email Facebook Twitter LinkedIn WhatsApp. However, Nielsen stated that the fall in butter consumption had nothing to do with the fat tax. The results failed to match the predictions of the health lobby’s computer models and the failed experiment has since been largely swept under the carpet in public health circles. The Danish law put a surcharge on foods containing more than 2.3 percent fat. Measures to reduce obesity must be based on solid science, not the shady marketing that tends to formulate policy in the U.S. In 2012, the Danish government has so far introduced higher taxes on beer, wine, chocolate, candy, sodas, ice cream, coffee, tea, cigarettes and light bulbs. In September, Hungary introduced a new tax popularly known as the "Hamburger Law," but that only involves higher taxes on soft drinks, pastries, salty snacks and food flavorings. With other countries following, is it something we should be considering in the UK? Your financial support helps build the future of our network of newsrooms across Europe. It’s all about economic costs to producers, as if consumer preferences were unimportant. {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}, Denmark imposes 'fat tax' on food to curb obesity. Linnet Juul's organization is pressuring lawmakers to simplify the tax, but said he is unsure what will happen when the new, centre-left government takes office. But consumers have begun hoarding provisions ahead of the price rise and some scientists have suggested that it would be better to target people's salt or sugar intake. Pros of a Fat Tax. Denmark has decided to abolish its fat tax after barely a year, citing too many negative side effects hitting businesses. KiMs (2012). In 2011 Denmark introduced a tax on saturated fat in food products, the first country in the world to do so. Denmark’s so called fat tax on foods high in saturated fats has been repealed by the Danish parliament only one year after being introduced. The tax required an immense bureaucracy to implement and it placed a heavy administrative burden not only on food companies in Denmark but in countries where food was exported to Denmark. In the past year Denmark has introduced a “fat tax,” Hungary a “junk food tax,” and France a tax on sweetened drinks. The only fats linked to weight gain are the refined oils used for cooking and made into margarine. But the food taxes are low, 0.34 kroner on a litre of soft drinks, for example. (updated: Other nations such as Hungary and Britain have also discussed introducing fat taxes as part of a solution to obesity problems. The Nordic country introduced the tax Saturday, of 16 kroner (£1.85) per kilogram of saturated fat in a product. Fat Tax In Denmark - YouTube Denmark is the first country to introduce a 'fat tax' on foods with high saturated fat content. For politicians, however, Denmark’s fat tax fiasco is a valuable reminder of how economically inefficient, regressive and unpopular such policies are. Denmark has taxed saturated fats since October 2011, and the experiment has been a failure. The tax was approved by large majority in a parliament in March as a … The report said the levy “proved to be efficient in reducing the intake of saturated fat as well as in improving other dietary measures and reducing mortality” from non-communicable diseases. The government also considered introducing a sugar tax from the beginning of 2013 that was going to add an extra 1.3 billion crowns (€175 million) to the state budget. According to DSK, the Danes’ border trade in Germany concerning daily food products has increased dramatically and effectively more than can be justified by the raised taxes. By continuing to browse the website, you are agreeing to our. A fat tax would make people pay the social cost of unhealthy food. He added that Denmark had lost many jobs in the retail sector due to the fat tax, but it would be too difficult to estimate exactly how many, and the country is unlikely to get them all back. Instead, the Danish government is to launch a new tax and competition plan. “The rise in the price on single units was actually limited, but the fact that we all talked about the new tax … that created a notion among consumers that if they went abroad, it would probably be a good idea to bring home some of the daily food products,” Nielsen said. The Danish government has said it intends to abolish a tax on foods which are high in saturated fats. The Danish National Health and Medicines Authority says 13% of the Danes are obese. In Denmark, a new tax on saturated fat in food products was introduced, with effect from October 2011, as a supplement to existing taxation on sugar, chocolate, candy, ice-cream and soft drinks. However, many administrative jobs were also created as a result of the fat tax, Nielsen joked. They buy olive oil and fry on a dry pan,” Nielsen stressed. Contact us. It would be similar in principle to a cigarette or alcohol tax. Web. People don’t buy margarine anymore. In October 2011, Denmark became the first country in the world to introduce a fat tax on meat, dairy products and cooking oil. This is not what we need in this economic situation,” Danish Minister for Taxation Holger Nielsen said in a statement, adding that the government had listened to the “concerns” that had been raised. | Whether the fat tax did work according to its intention, to improve public health, remains to be seen. The “fat” tax is 16 kroner per kilogram of saturated fat. Now more than ever we need unbiased, expert information on how and why the European Union functions. | We know our readers value our reporting, and the outpouring of support we have received since the beginning of the crisis shows that our readers are willing to step up for the journalism that they trust and value. The fat tax in Denmark distinguishes itself from the taxes mentioned above by targeting a nutrient instead of specific groups of food and as such this is the first tax of its kind in the world. Denmark has become the first country in the world to impose a "fat tax" on unhealthy foods. When it came to the fat tax, retailers complained that Danes simply went to … The fat tax - of 16 crowns (€2.14) per kilo - was applied to meat, dairy products and cooking oil which consist of more than 2.3% saturated fat. Danes are worried that the tax has increased food bills (which was the point of the tax) and that it could be threatening the food industry. The outgoing conservative Danish government planned the fat tax as part of a goal to increase the average life expectancy of Danes, currently below the OECD average at 79 years, by three years over the next 10 years. Privacy Policy The fats in milk do not contribute to weight gain and actually protect against these diseases. The aim is to reduce people's intake of fatty foods. Three months ago, a survey by DSK showed that the Danes’ border trade in Germany had sky-rocketed. Obesity and the Fat Tax Issue (2011). It hit all food items with a saturated fat content exceeding 2.3%. It’s a trend that has been going on for years. In March 2003, Denmark became the first country in the world to introduce laws to severely restrict consumption of trans fats. The fat tax created administrative burdens, a dramatic rise in border trade and uncertainty among consumers about what food products should cost. The objective of the present paper is to investigate the effects of the tax on consumers' intake of saturated fat within three different types of food product group: minced beef, regular cream and sour cream. The introduction of a ‘fat tax’ in Denmark has been widely reported this week and will apply to foods that contain saturated fat. 2011 also saw a re-introduction of a tax on sweets (including soft drinks and ice cream) in Finland and at the beginning of 2012, France introduced a tax on drinks with added sugar or sweetener. Denmark’s food taxes A fat chance. At the same time, readers support in the form of recurring monthly financial contributions provides continuous support for our work enabling us to innovate.Â. The Nordic country introduced the tax Saturday, of 16 kroner (£1.85) per kilogram of saturated fat in a product. It was carefully calibrated to bring in just enough money to make up for a … IMACE, the European Margarine Association, is open to partnership with public health organisations, civil society representatives, government, and industry to launch collaborative public health policies that have better chances of reaching out to everyone.". The fat tax is a tax paid per kilogram of saturated fat in the following foods if the content of saturated fat exceeds 2.3 g/100 g. These include meat, dairy products and animal fats that are rendered or are extracted in other ways, edible oils and fats, margarine and spreadable blended spreads. Both are gaining popularity and when done in combination will lead to serious weight loss. In Denmark, there are excise duties on chocolate, candy, ice cream and soft drinks - commonly referred to as a “sugar tax” – intended to curb obesity.The excise levy is not to be confused with the Danish “fat tax” placed on foods high in saturated fats that was introduced in 2011 but scrapped last year.. Please consider making a recurring contribution to EURACTIV Media Network for Europe. The controversial tax, designed to improve the health of Danes by discouraging consumption of fatty foods, was opposed by farmers and food companies and was unpopular among consumers. Denmark Fat Tax . 1 2 Peru has announced plans to tax junk food, and other countries, notably Ireland, are also considering such taxes. In shops, the fat tax has had a big psychological effect on consumers. It’s better to launch awareness programs on fat loss techniques which include the introduction of blue fat freeze kit and HIIT exercise techniques. Europe Nov 17th 2012 edition. 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