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Takeaways face a fat tax

Friday, February 04, 2011

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Obesity seems to becoming a bigger concern for the government as the number of overweight people in the UK rises and causes knock effects on health and work. The government are now considering placing a ‘fat tax’ on takeaways. Burger bars, kebab houses and fish and chip shops would be forced to pay the £1,000 before being allowed to open their doors to the public. This would also hit High Street fast food giants like McDonald’s, KFC, Burger King, Pizza Hut and Dominos.

The scheme is set to be launched in Oldham, which has a higher child obesity level than the national average. The money that the tax would raise would be spent on specific programmes aimed at promoting healthy eating among children.
Local business owners are very concerned that this will cause takeaways to close as they will not be able to pay.
Back in 2004, the Government floated the idea of a fat tax on unhealthy foods. However research by the Institute for Fiscal Studies warned that a fat tax on consumers would have a disproportionate effect on the poor.

Categories: MACROECONOMICS TOPICS Government income and expenditure
Tags: taxation, gcse macro

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