Butter and eggs now cost more in Denmark because of the country’s new “fat tax.”
Members of Denmark’s national government want the people of their country to be healthier. They want to discourage them from eating too many fatty foods. In October, Danish leaders placed a special tax on foods that are high in fat. This is the world’s very first “fat tax.” The tax makes these high-fat foods more expensive. Government leaders hope the tax will help the Danish people eat healthier and live longer lives.
Items affected by the new tax include milk, cheese, butter, pizza, and other foods that have more than 2.3 percent saturated fat. Saturated fat is a kind of fat that is solid at room temperature. It is thought to be bad for people’s health if they eat too much of it. The tax rate for fatty foods in Denmark is 16 Danish kroner for every kilogram of saturated fat in a food. In American terms, this is equal to about $1.29 for every pound of saturated fat. The tax adds about 12 cents to a bag of potato chips, 45 cents to a half-pound package of butter, and 50 cents to the price of a pound of cheese.
Many people in Denmark are not happy about the new tax. Some began buying fatty foods in bulk before the tax went into effect. Danish food producers are concerned that the Danish people will start buying more food from neighboring countries. Dairy farmers in Denmark are upset that their products are being labeled as unhealthy. They argue that dairy products are good for you as long as you don’t overeat them. Other people hope the tax will change people’s eating habits and help lower the nation’s income tax. Still others think the tax is not high enough to make much difference either way.
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