New Delhi: In order to keep obesity under check, Kerala has introduced a ‘fat tax’ on the consumption of junk food items like pizzas and burgers sold through branded restaurants.
In its first State Budget, the newly-elected LDF government imposed a 14.5% tax on branded restaurants selling items like tacos, pizzas, burgers, sandwiches, among others, state finance minister Thomas Isaac announced.
The government officials informed that it’s up to the restaurants to decide whether to pass on the cost to customers by raising prices or bear it themselves.
Meanwhile, the state government has also imposed 5% tax on wheat products in packets, on packaged basmati rice and coconut oil; the plastic disposable glasses are to be taxed at a whopping 20%.
‘Fat tax’ is a proposed tax on foods or drinks judged to be unhealthy and whose consumption is believed to be linked to rising obesity levels.
The first state in the country to introduce such move, the ‘fat tax’ is already in place in countries such as Denmark and Hungary.