Taxing junk food
In an attempt to tackle overweight and obesity in Denmark, the country’s Government recently introduced an additional tax on foods containing more than 2.3 per cent saturated fat. This was reported widely in the Australian media, with some calls for a similar tax in Australia.
The Dietitians Association of Australia (DAA) is not convinced that making ‘unhealthy’ or ‘junk’ food and drinks more expensive will stop people buying them.
If a tax on ‘junk’ food were to be introduced in Australia, a real risk is that people will continue to spend money on these foods, meaning they would have less to spend on healthy foods. This would have the greatest impact on people on lower incomes, where the burden of disease is often greatest. So DAA believes subsidising healthy foods, such as fruit and vegetables, to be a more effective, long-term approach.
At present, it is also unclear what foods would fall into the ‘unhealthy’ food and drinks category. So before taxation is considered, a clear definition of ‘unhealthy’ or ‘junk’ foods would be needed.
However, what is clear is that it is simplistic and unhelpful to tax foods based solely on saturated fat content. If a food and drinks tax were to be introduced in Australia, DAA believes food components such as sodium (salt) and sugar would also need to be considered, along with beneficial nutrients, like dietary fibre.
Obesity is a complex problem, and the solution is much broader than just taxing ‘junk’ foods.
A comprehensive, coordinated and evidence-based approach is needed to tackle this tragic problem. DAA believes this includes funding the dietary management of obesity through Medicare, better regulating food marketing, improving the Australian food supply, and a host of other actions, as outlined in the Association’s Obesity Strategy.