13 Important Pros and Cons of Fat Tax

A fat tax is a tax that is placed on fattening food, beverages, or overweight individuals. It is aimed to discourage unhealthy diet and reduce the economic cost of obesity. It is normally aimed at decreasing the consumption of food that is linked to obesity.

Researchers suggest that the government should subside fruit and vegetables in order to increase households.

Fat tax is a tax that is placed on fattening food, beverages or on overweight individuals. It is aimed to discourage unhealthy diet and reduce the economic cost of obesity. It is normally aimed at decreasing the consumption of food that is linked to obesity. Researchers suggest that the government should subside fruit and vegetables in order to increase households. Pros of Fat Tax 1.	It is part of equity neutral proposition Other areas of taxation should be addressed to reduce the impact that some households would face with this change. It can face challenges but at the end fat tax would be an equity neutral proposition that helps everyone. 2.	Cheap and effective It is the least costly method to reduce the consumption of goods that can lead to obesity. It can be implemented quickly and results can be seen within short period of time. 3.	It can improve personal productivity By reducing obesity, people can have more energy to invest in other areas hence it is easy to increase the productivity. 4.	It can be used as subsides for healthy foods The government can use this to subside healthy foods so that people may tend to go for healthier foods rather than the junks that may lead to obesity. 5.	It will slow the rise of obesity The number of people who are suffering from obesity will reduce as a result as there will be high tax on the foods that causes obesity. 6.	Source of revenue to the government  The government will be able to get some money by increasing the amount of tax on certain food as some people will still go for the foods. 7.	It will reduce the problems related to social cost When the people are obese, it causes a social problem that needs to be dealt with in the society. When there is fat tax on the foods there will be a possibility of reducing the cost that is accompanied by treating the diseases related to fatty foods.   Cons of Fat Tax 1.	Cost of obesity may be over-estimated The government may be over-estimating the cost of obesity and this may make it possible for it to impose high tax on the goods to discourage people from going for the goods. 2.	It raises product costs Raising the tax on the unhealthy foods will also make the foods that are healthy but related to it to raise the price hence the consumers will suffer in the name of raising tax on fatty goods. 3.	Other goods may be excluded The government may exclude other goods from fat tax and this may lead to people consuming a lot of them hence the difference may be the same as still there will be cases of obesity. 4.	Lose of focus on fat tax It is easy to lose focus on the main aim of fat tax as the government concentrate on the amount of revenue being generated by the foods forgetting the main aim hence the cases of obesity will still be on rise. 5.	No guarantee that eating patterns will shift There is no guarantee that the eating patterns of people suffering from obesity will change as people will still go for the foods however much the prices will be high. 6.	It may lead to population increase There is a possibility that the population will increase and this may make the government not to be in a position to provide for the population hence creating problems that are associated with high population. Summary The aim of imposing the policy can be good but the results can be unpredictable and this may not be a guarantee that the cost of the goods will aid in the reduction of number of obesity cases. The government has to put in stern measures to ensure that the policies are effective for them to be able to attain their goal.

Pros of Fat Tax

  1. It is part of the equity neutral proposition

Other areas of taxation should be addressed to reduce the impact that some households would face with this change. It can face challenges but at the end fat tax would be an equity neutral proposition that helps everyone.

  1. Cheap and effective

It is the least costly method to reduce the consumption of goods that can lead to obesity. It can be implemented quickly and results can be seen within a short period of time.

  1. It can improve personal productivity

By reducing obesity, people can have more energy to invest in other areas hence it is easy to increase productivity.

  1. It can be used as subsidies for healthy foods

The government can use this to subside healthy foods so that people may tend to go for healthier foods rather than the junks that may lead to obesity.

  1. It will slow the rise of obesity

The number of people who are suffering from obesity will reduce as a result as there will be a high tax on the foods that causes obesity.

  1. Source of revenue to the government

The government will be able to get some money by increasing the amount of tax on certain food as some people will still go for the food.

  1. It will reduce the problems related to the social cost

When people are obese, it causes a social problem that needs to be dealt with in society. When there is a fat tax on the foods there will be a possibility of reducing the cost that is accompanied by treating the diseases related to fatty foods.

Cons of Fat Tax

  1. Cost of obesity may be over-estimated

The government may be over-estimating the cost of obesity and this may make it possible for it to impose high taxes on the goods to discourage people from going for the goods.

  1. It raises product costs

Raising the tax on the unhealthy foods will also make the foods that are healthy but related to it to raise the price hence the consumers will suffer in the name of raising the tax on fatty goods.

  1. Other goods may be excluded

The government may exclude other goods from fat tax and this may lead to people consuming a lot of them hence the difference may be the same as still there will be cases of obesity.

  1. Lose of focus on fat tax

It is easy to lose focus on the main aim of fat tax as the government concentrates on the amount of revenue being generated by the foods forgetting the main aim hence the cases of obesity will still be on the rise.

  1. No guarantee that eating patterns will shift

There is no guarantee that the eating patterns of people suffering from obesity will change as people will still go for the foods however much the prices will be high.

  1. It may lead to a population increase

There is a possibility that the population will increase and this may make the government not be in a position to provide for the population hence creating problems that are associated with a high population.

Summary

The aim of imposing the policy can be good but the results can be unpredictable and this may not be a guarantee that the cost of the goods will aid in the reduction of the number of obesity cases. The government has to put in stern measures to ensure that the policies are effective for them to be able to attain their goal.

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