Saturday, July 9, 2016

Kerala introduces a 'fat tax' of 14.5% on fast foods like burgers and pizzas


Kerala has set a new end in generation of revenue - the state has pioneered the fat tax in the country by introducing a 14.5 per cent levy on burgers, pizzas and similar food in branded restaurants. This concept is quite popular in some western countries as it tries to make food or beverages linked to obesity costlier in order to discourage their consumption.
This has been reported in telegraphindia.com dated 9 July 2016.
This fat tax has been levied by the new Left government in Kerala through its annual budget. A tax of 14.5 per cent is being levied on food items like burger, pizza, tacos, donuts, sandwich, burger-patty, pasta, bread fillings and others sold by branded restaurants as fat tax.
This is the first time in India that any state has imposed such a tax. Kerala hopes to earn around Rs 10 crore a year from the fat tax which is like a drop in the ocean because liquor had made the state exchequer richer by Rs 8,100 crore in 2015-16. Outlets like KFC and Domino's have mushroomed in the state and the government wants to tap the hidden potentials for earning more revenue.


Image courtesy wikimediacommons.org

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