London: The British government may levy "fattax" on junk food and sugary drinks in a bid to reduce obesityamong consumers and reduce fiscal deficit, a media reportsaid.
The "fat tax" would be applied to processed foods, snacksand sugary drinks in much the same way as taxes on alcohol andtobacco.
However, the FSA is also considering the possibility ofimposing 17.5 per cent VAT to foodstuff like fat milk, butterand cheese to encourage consumption of products with lesssaturated fat. The FSA fears that the nation`s excessive consumption ofsaturated fat is leading to an increased numbers of deathsthrough clogged arteries and heart disease. The scheme has met with opposition from consumer groups,the daily said. However, some research has claimed a fat tax could saveup to 3,000 lives per year, the report noted. According to The Telegraph, research by the Institutefor Fiscal Studies warned that any fat tax would have anegative effect on poorer families and have a greater impacton their food budget than on richer families. PTI
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