Taiwan Considering Junk Food Tax
The Bureau of Health Promotion (BHP) is drafting a bill to charge special tax on food that are considered unhealthy, such as sugary drinks, candies, cakes, oily fast food, and alcohol.According to the BHP Director General Shu Ti-chiou, the proposal aims to promote a healthier eating habit.
…The BHP is expecting the Legislative Yuan to approve it by the end of next year and to enact the tariff in 2011.
If passed, Taiwan could be the first country with a “junk food” tax, local reporters said.
I’ll be curious to see the details on this: how much the proposed tax will be, the specific foods/products it will be applied to, what the money will be used for, and – most importantly – the effects the BHP believes it will have on consumption.
December 30, 2009
Taiwan Considering Junk Food Tax – http://blog.ultimatefatburner.com/2009/1…
December 31, 2009
I really have a hard time supporting a tax on things like this. It would seem easy for any Government to deem something “bad for you” and put a tax on it.
It just seems like opening Pandoras Box.
December 31, 2009
In principle, I don’t have a problem with a government using taxes as a disincentive for engaging in certain behaviors… cigarette taxes are a case in point.
BUT… the rates on ciggies are STEEP. The CDC estimates current federal and state excise taxes average out to $2.21 per pack (MMWR: May 22, 2009 / 58(19);524-527) – and that does not include local taxes levied in certain areas (see chart here). Smoking is an expensive habit to take up, let alone maintain.
I have a tougher time seeing how this model would apply to junk food, as it’s hard to imagine any tax large enough to effectively drive down consumption that wouldn’t also be strongly opposed by both the food industry and the general public.
In addition, the impacts of such a tax would disproportionally fall on lower-income people, who – at least in the US – often live in areas with restricted access to fresh food alternatives. And – of course – there are likely to be big problems over where the lines are drawn. Tobacco products are relatively simple to identify and control. But junk food is another matter: past a certain point, the lines between “junk” and “real” get pretty fuzzy, and a lot more products are involved.
So in the end, it’s potentially a) messy; and b) ineffective.
December 31, 2009
In theory, I would support a tax on junk food. In Canada, where we have universal health care, my tax dollars support a system that is disproportionately burdened by people who engage in unhealthy lifestyle practices.
Such a tax would unlikely prohibit the consumption of such items, but it would give the government added funds, and make the folks who make bad lifestyle choices shoulder more of the costs of their own health care requirements.
At the same time, I agree with the points Elissa makes; taxes like this would hit the lowest income groups the hardest – as she indicates, those living in low income neighborhoods often have the least access to healthy alternatives.
And second, I’d be surprised if such a tax would really be applied fairly and effectively; I’d be shocked if items like Fruit Loops and Apple Jacks or chocolate milk were taxed.
We’ve already seen some pretty ridiculous foods bearing the Heart & Stroke’s Health sign, for instance.
In short, a good idea in theory, but unlikely to be anything that could be implemented effectively.
January 1, 2010
I agree with you both,something needs to be done to cut down the unhealthy eating. The problem is that the “tax way” I feel would be a bad idea.
Lets say a family of 4 eats at a fast food place 3 times a week. They spend appox. $18-$20 per visit. How much of a tax would it take to make them cut down on their trips.
If the tax was say 20%, that would equate to $3.60-$4.00. Do you think that would be enough to slow them down? IMHO probably not.
The Government would just get more money from the people that can afford it the least. Mostly because the family would not choose to stop getting the fast food.
Taxes increased, problem not solved.