In Denmark, fat is where it’s at

Be gone, all you skinnies.

The Fat is back.

In Denmark, legislators have repealed the so-called “fat tax,” a government levy on foods high in saturated fat.

The none-too-popular law lasted all of one year.

It wasn’t just Danish consumers complaining, either. Many Danes opted to trek to Sweden or German to buy their high-fat butter and ice cream. They were sated, but Danish businesses who lost sales weren’t. So the law has been kicked to the side.

Other measures in the battle against obesity will be considered.

Denmark also is dropping its plans for a sugar tax,  however. No surprise there.

Of course, this isn’t just a Danish issue, or a Euro issue, for that matter. Stateside, there is the ongoing battle in the NYC over the effort to cut back on large size sugary drinks. And Californians just beat back an effort to impose their own tax on sugary drinks.

Look for more.

4 comments Add your comment

Steve

November 14th, 2012
12:19 pm

The fallacy, of course, is that fat makes people fat.

Kat

November 15th, 2012
12:26 pm

The Danes went to “German?”

FreshmakerGT

November 15th, 2012
3:56 pm

Obviously a typo. I fully support those types of taxes. If people are going to eat unhealthy, I think it’s fair to tax those foods to help offset their healthcare costs(which the gov’t there pays for) down the road.

Gustav Uffe Nymand

November 19th, 2012
6:10 am

As a danish citizen is it fun to see how people are commenting the danish fat tax.
The fat tax turned out to be the most unpopular tax in danish history.
Basically, the danish population are demanding reforms to improve competitiveness of the private sector and scaling back the size of the state in order to finance tax cuts
The population is simultaneously demanding prioritizing of public funds in order to have them used on something (infrastructure, science, education, productivity reforms) there boost long term growth potential and long term fiscal health

We are having a center-left government, but it’s policies are more pro reform and more center right compared to the previous center right government. The leader of the liberal center left party is even being compared to Margaret Thatcher due to the Iron Lady qualities in pushing through tough reforms to strengthen fiscal health and competitiveness.

Examples of reforms made by this government; Tax reform lowering income taxes financed by reducing annual increase in social transfer, reducing defense budget, sacking some administrative employees in ministries, making it more difficult to obtain disability retirement etc
Examples of reforms made by previous government but implemented by this government: phasing out of another early retirement system, halving the allowed time period for unemployment benefits and doubling the required time for regaining rights for unemployment benefits

More reforms are expected this spring there will make further cuts in social spending and increase the size of the labour force

All this is done despite;
Denmark having a very low net public debt (3,5% of GDP)
Next years budget deficit will be lower compared to this year (there were one time expenses in scrapping an early retirement scheme)
High surpluses on the trade balance, but

It is considered essential for long term survival of the nation to be competitive with Germany and we have to prepare the economy for the retirement of the baby boomer generation.

Conclusion; all danish parties are simultaneously shifting their economic policies towards the right