Taxes on food and drink would be regressive
The Institute for Fiscal Studies concluded that a "fat tax" would probably be regressive, costing the poor relatively more than the rich; because consumption of fat and other ‘bad’ nutrients does not differ much across the income distribution.
  • For the hypothetical tax we model, the poorest households lose around seven times more, as a proportion of income, than the richest households do, on the assumption that there is no behavioural change.
  • The regressivity of a ‘fat tax’ is likely to hold no matter how the tax is implemented – whether on fat content, on calories or just attached at a particular rate to certain foods.

 

CONTEXT(Help)
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Tackling obesity in the UK »Tackling obesity in the UK
Tackling obesity »Tackling obesity
Develop a coherent fiscal, regulatory and governance framework »Develop a coherent fiscal, regulatory and governance framework
Use taxation and subsidies to encourage healthier food choices »Use taxation and subsidies to encourage healthier food choices
Use taxation to encourage healthier food choices »Use taxation to encourage healthier food choices
Taxes on food and drink would be regressive
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