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.

 

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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
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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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