Quote:
Originally Posted by CharlieO
They are however considering a 'fat-tax' where by food goods with above a certain level of saturated fat will have extra tax implemented. This is because they do care about the disgustingly high obesity levels in the UK in comparison with the rest of Europe.Fatty food has a relatively elastic demand due to the high number of substitutes or alternatives so the tax will end up not generating a huge amount of revenue but more so reducing the weight issues. So the healthier food may well become the cheaper kind in the future.
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Well this would be all well and good if it works out like this. However the way I imagine just adding a fat-tax will work out is that everything else stays the same, fatty foods go up, leaving low income families(who currently buy this fatty crap because its all they can afford) struggling to buy anything :S