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‘Fat tax’ on junk food as prices may rise to boost the war against obesity

Sean Poulter
UK Daily Mail
May 10, 2010

Junk food and sugary drinks could be hit with ‘fat taxes’ in an effort to combat obesity and help fill the black hole in Government finances.

The Food Standards Agency is planning to consult on whether such taxes would help make people eat healthier food.

If imposed, the taxes would operate on the same principle as those on tobacco and drink to change behaviour and raise money.

The most likely option would be to apply the so- called fat tax to processed foods, snacks and sugary drinks. 

However, under one scenario, 17.5 per cent VAT might even be applied to full fat milk, butter and cheese to encourage a switch to products with less saturated fat.

Food is currently exempt from VAT.

Full article here [1]