Denmark Imposes Fat Tax: Is It a Good Idea?

Denmark has become the first country in the world to impose a "fat tax." It's not a tax on being fat -- it's a tax on buying fat. Like alcohol and tobacco in America, on Saturday, Denmark will start taxing its citizens on fatty foods -- such as butter and potato chips. Somber news for thrifty Danish junk food junkies.

The tax will depend on the fat content of the product being sold. For instance, it will add 14 percent to the price of a pack of butter but 21 percent on as much margarine. The Copenhagen Post reports authorities expect the taxes to simultaneously raise 1.5 billion kroner ($270 million) and also cut fat consumption.


But don't think this is out of desperation to get thin. Denmark's obesity rate hovers near 10 percent. Compared to America, where the obesity rate is closer to 30 percent, or even the U.K. with its 20 percent obesity rate, Denmark actually seems to be in pretty good shape.

Lotte Engbæk Larsen, food policy manager of the Denmark Chamber of Commerce, is against the tax. She said in December, "This tax hits all types of food, also healthy and lean products such as duck and cheese. And in reality, this tax will only have a very minute effect on our health. According to the Prevention Commission, the tax will increase our life expectancy by 5.5 days after the tax has been in place for 10 years."

She also warns that it will affect poor people the most.

Morten Petersen, purchasing manager for Dansk Supermarket, told a Danish newspaper, "There will be rather significant price increases on some products that, without a doubt, buyers are going to notice ... For some [products], of course, it will just be around 25 øre, but in terms of the whole shopping cart, it’s going to be a bunch of money. I simply don’t think consumers realize just how big the price hikes are going to be."