Denmark intends to abolish the world's first fat tax which was introduced just over a year ago. It also intends to scrap plans to introduce a sugar tax.
In October 2011 the BBC reported the Danish government introduced a tax on all foods containing more than 2.3 percent saturated fat. The tax, covering foodstuffs including milk, cheese, butter, oil and processed food, was implemented in an effort to limit the amount of fatty food consumed by the growing number of Danes that are overweight.
Similar plans to introduce a sugar tax were on the cards but the idea has now been scrapped along with the fat tax. According to Times Live the Danish tax office issued a statement saying:
"The fat tax and the extension of the chocolate tax, the so-called sugar tax, has been criticised for increasing prices for consumers, increasing companies' administrative costs and putting Danish jobs at risk. At the same time it is believed that the fat tax has, to a lesser extent, contributed to Danes travelling across the border to make purchases."
Denmark's Confederation of Industries described the fat tax as a "bureaucratic nightmare for producers and outlets," significantly increasing the price of goods which fell foul of the tax."
4-Traders reported that FoodDrinkEurope welcomed the abolition of the fat tax, noting such taxes "are ineffective in changing consumer behaviour in relation to complex issues such as diets and lifestyles that affect obesity trends."