2 Oct 2011

Fat tax in Denmark

8:09 am on 2 October 2011

A fat tax is now in force in Denmark.

Designed by the outgoing government in a bid to limit the population's intake of fatty foods, the tax will add 16 kroner per kg of saturated fats in a product.

For example, a 250 gram packet of butter will increase by 2.2 kroner to more than 18 kroner.

Consumers hoarded butter, pizza, meat and milk to avoid the immediate effects of the new tax, which came into force this weekend.

The Confederation of Industries says it will be a bureaucratic nightmare.

However, the new tax may not last long. The Federation of Small and Medium-sized Enterprises says the European Union is studying the tax as there may be a competition issue.