Indian State Introduces ‘Fat Tax’

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Food chains like McDonalds, Pizza Hut and KFC are expected to be hit by the first of its kind tax in India.

Kerala's newly elected Left Democratic Front Government in its revised Budget for 2016-17 proposed to levy an additional 14.5% tax on restaurants serving burgers, pizzas, sandwiches, tacos, doughnuts, burger-patties, pasta and bread fillings, generally categorized as Junk Food.

​The law is aimed at dissuading youth from consuming junk food that has ill effects on health. Nevertheless, the government also hopes to increase its revenue collection by this measure.

​Countries like Denmark and Hungary have already experimented with the concept of "fat tax."

 

 

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