Fat Tax Mooted in New Zealand

July 31, 2013 New Zealand Taxation

20070215  1834 hours chicken strips at the gameTaxes targeted at unhealthy food could drastically reduce the occurrence of heart disease in New Zealand.

In a new study published on July 31st by the Australian and New Zealand Journal of Public Health researchers raised calls for the government to consider implementing a tax on some “fatty foods” in order to change New Zealanders’ diets and improve the country’s health.

The study calls for targeted taxes to be used to reduce consumers’ consumption of saturated fats, claiming that a 1 percent hike in taxes on products containing such fats would lead to a 0.02 percent decrease in consumption.

The tax collections from the unhealthy foods cold then be used to reduce the tax burdens on foods rich in poly-unsaturated fats.

According to the finding of the study, a 5 percent reduction in the consumption of saturated fats, combined with a 5 percent increase in the consumption of poly-unsaturated fats would lead to a 10 percent decrease in the instance of heart diseases in New Zealand.

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