FAT TAX MAY STIR A HORNET’S NEST
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Days after the Kerala government’s budget caught the nation’s attention with its fat tax, the jury (judge (an art or craft exhibition or exhibit)) is still out on the intention. On the face of it, the imposition of 14.5 per cent on unhealthy foods, a first in the country, can only be lauded (praise (a person or their achievements) highly) as it sends out the right message to youngsters who feast (a large meal, typically a celebratory one) on junk food. But there is more to this tax than what meets the eye.
According to Finance Minister T M Thomas Isaac, the tax will be applicable for burgers, pizzas, doughnuts, sandwiches, tacos, pasta, burger patty and bread-filling sold by ‘branded’ restaurants. In other words, this tax will impact brands like McDonalds, SubWay, Burger King, Pizza Hut and KFC and aims to mop up (finish off, deal with, make an end of) `10 crore.
With this selective targeting, fat tax is poised to raise the hackles (dress or comb (flax) with a hackle) of the MNCs and get their legal department into a huddle (crowd together; nestle closely). Because, they would be keen to examine the legality of this tax barrier being erected (create or establish (a theory or system)) by a state against foreign goods at a time when the Modi government is going out of its way to open up to foreign investment.
Then, there is also the pertinent (relevant or applicable to a particular matter; apposite) question as to why this fat tax is not imposed on similar items sold in local restaurants, such as pizza houses with Italian chefs. At another level, since high cholesterol items such as biriyani, ghee rice, shawarma, kuzhi mandi and the inevitable (certain to happen; unavoidable) deep fry items of Kerala origin, with beef leading the list, do not come under the ambit of this tax, it puts to sword (military power, violence, or destruction) the genuine health concerns of the state government.
The National Health Survey 2015 saw Kerala fetch second only behind Punjab in the high obesity (the state of being grossly fat or overweight) sweepstakes. So, if obesity, especially among the youth, is the real concern, then the tax should cover sugared sodas as well. Not sure if the Kerala government has the will to take on heavyweights like Pepsi and Coke. Will the fat tax succeed? Experience from countries like Denmark, where it was repealed (revoke or annul (a law or act of parliament)) within 15 months, suggests it will come a cropper.
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