In a first, Kerala imposes 14.5% 'fat tax' on junk food

Pizzas, burgers, sandwiches, tacos, among others, to get dearer; ready-to-eat chapatis to be imposed with 5% tax

In a first-of-its-kind move in the country, Kerala has introduced a ‘fat tax’ on the consumption of junk food items like pizzas and burgers sold through branded restaurants.

The newly-elected LDF government imposed 14.5% tax on branded restaurants selling items like tacos, pizzas, burgers, sandwiches, among others. The announcement was made by state finance minister Thomas Isaac as a part of the newly-elected LDF government’s first State Budget presentation after being elected to power. 

Multi-national fast food chains like McDonalds, Pizza etc. are set to be hit on the back of the new tax imposition. 

Meanwhile, the state government has also made consumption of ready-to-eat chapatis dearer with the introduction of 5% tax on wheat products in packets. Along with this, 5% tax has been imposed on packaged basmati rice and coconut oil. Disposable glasses made out of plastic are set to be taxed at a whopping 20%. 

 

The introduction of fat tax, as a measure to curb the consumption of junk food among people, has been a matter of global debate. Some countries like Denmark and Hungary even implemented it. Denmark, however, scrapped it later.