A fat tax is a tax or surcharge that is placed upon fattening food, beverages or on overweight individuals. It is considered an example of Pigovian taxation. A fat tax aims to discourage unhealthy diets and offset the economic costs of obesity
he recently-elected Communist government says the 14.5% tax is aimed at making people more conscious about food choices and curbing obesity.
“This is more of a preventive measure as Kerala’s food habits are changing dramatically. People are eating a lot of junk food and rejecting traditional food,” says Finance Minister Thomas Isaac.
Kerala has the most number of people suffering from obesity after the northern state of Punjab in India, according to a national family health survey. With increasing affluence, lifestyle diseases are on the rise and the government aims to check this with the fat tax.