Why a Fat Tax Is Not Enough to Tackle the Obesity Problem

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We often hear calls for a junk food tax or “fat tax” when there’s discussion of Australia’s growing obesity problem. The idea behind such a tax is that it would enable governments to subsidies healthy foods so that they’re more affordable, and make unhealthy foods comparatively expensive so people buy less of them. But would they really? Is cost really the most powerful determinant of what food products people buy? Let’s consider the likely effects of a junk food tax. Researchers claim that a 20% tax on a can of soft drink wouldn’t be a sufficient enough to deterrent to purchasing it. It’s easy to visualise this: someone approaches the refrigerator in a convenience store wanting to buy a drink and ready to make a decision based on taste and cost. If a soft drink is more expensive than low-fat milk or water, it becomes less attractive and we could see a change in buying behavior – and the attendant reduction in the consumption of obesity-promoting products. Most meal options are not arrayed together for a simple price comparison. But the junk food tax idea falls over in other situations where food choices are made – when factors other than price come into play. Family dinner options, for instance, are rarely arrayed together in one location for a simple price comparison. Part of the attraction of takeaway food is that it provides instant satisfaction while demanding little in the way of (cooking) skills or (nutritional) knowledge. Dinner options that require food preparation may be out of the question for people living in housing with inadequate cooking and food storage facilities. So, although I can prepare a vegetable and lentil curry with brown rice, followed by apple crumble with real egg custard, for a total of $3.39 per person, in disadvantaged communities this might not compare favorably with the “Five-dollar Meal Deals” offered by various takeaway

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