AFGC In Opposition To Proposals For High-Energy Food Tax

by Mary Swire, Tax-News.com, Hong Kong

08 January 2009

A government plan to begin taxing high-energy foods containing large amounts of salt, fat and sugar has been heavily criticized by the Australian Food and Grocery Council (AFGC), it has been revealed.

According to the Rudd Government's proposals, foods rich in salt, fat and sugar - particularly blue cheese, jams and preserves and even vegemite - could end up falling foul of a new "fat tax" designed by the government's preventative health taskforce to try and encourage healthier eating by making such items more expensive.

However, criticism has poured in since the announcement, with opposition leaders claiming such a regime infringes the rights of individuals to make their own dietary choices.

Particular objection has been made by the AFGC:

"Proposed taxes on fat or energy dense foods would be highly regressive pushing up food prices for those who can least afford them, with evidence suggesting such a tax in fact leads to poorer dietary choices being made by ‘at risk’ groups, as such taxes put greater pressure on the food budget, leading to more purchases of cheaper, energy dense foods."

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