Imposing taxes on unhealthy foods might not be a big concern for some people. However, it should concern those who want a healthier society. If tax isn’t imposed on unhealthy foods, people will suffer from obesity, causing more problematic health issues in the future. Fat tax is a tax imposed on unhealthy foods, which was created to decrease obesity and health issues. The imposition of a tax on unhealthy food has been a controversial issue. Some say that it brings negative effects and social disturbance, while others say that it will bring a healthier society. Some countries around the world have tried taxing junk food, most of them succeeding in decreasing the obesity rate. So what is the government to do when a controversial issue like this arises? The best solution would be to tax unhealthy foods for the sake of a healthier society and for many more advantages leading to it.
Fat taxes will discourage people from buying unhealthy foods. Since tax is placed on the foods, the cost will increase, leading people to start buying less junk food. The positive effect of this tax can be shown with an example of when America imposed a tax on cigarettes and has seen a significant decrease in smokers. In 1970, the percentage of adult smokers was about 40%. By 2011, the average tax per pack was increased by more than $2, and only 20% of adults smoked cigarettes. Thus, with a similar implementation of taxing a certain good, it is likely that a similar effect might be seen by taxation on junk food, making people focus more on healthier substitutes. According to a research conducted by Kanishka Misra, a professor at Michigan Ross University, it was found that consumers will choose to purchase healthier food when junk food has the same price as the healthier product. This clearly shows that once unhealthy foods are raised in price due to tax, people will become more cautious of their purchases and tend to choose healthier options when the price is the same. Overall, not only will people buy less junk food, but it will also make people healthier.
With fat taxes, the government will also generate more money. Governments have been making a huge amount of money just by implementing taxes on junk food. An example is Hungary. Hungary has been placing taxes on unhealthy foods since 2011, and the Hungarian Government has estimated that the fat taxes would produce an annual revenue of $82 million. This money would be used to invest more in beneficial aspects. Not only will the government earn money, but it will also spend less. Currently, America’s obesity rates are so high that its government spends more than $190 billion per year on obesity-related issues. This money is invested in healing and preventing obesity-related diseases. Since the purchase rate of junk foods will decrease due to this system, fewer people will suffer from obesity. Naturally, the government would be able to invest less money in healthcare for obesity. Therefore, governments will be able to save and earn more money when the fat tax is implemented.
Finally, companies will start producing more healthy foods when tax is imposed. If fat taxes are implemented, companies that produce unhealthy foods will have to pay taxes, too. The companies would be unwilling to pay. As a result, many companies will change their products to healthier foods. Surprisingly, this is already happening. In the United Kingdom, 50% of the manufacturers have reformulated after the country has imposed fat taxes. Thus, fat taxes will also bring a good influence on manufacturers and the products that are produced.
Many critics argue that some will not be able to afford food when tax is placed. Although this might be true for some people, they will have many alternatives to help them survive. For example, the government will provide them with financial aid and basic necessities. In addition, when the concept of supply and demand is implemented, healthy foods will become cheaper, and junk foods will increase in price. Therefore, it will become easier for people to purchase healthier foods than before.
The imposition of fat taxes is a controversial debate that has been going on for years. Some say that the negative effects of fat taxes outweigh the positives. However, it has been proven by experts and statistics that this is not true. Imposing a tax on junk foods would be a great solution to obesity and other health problems happening around the world. Therefore, governments should impose taxes on unhealthy foods to create a healthy society for us to live in.
(Source of Image) https://www.sciencejournalforkids.org/articles/could-higher-junk-food-taxes-reduce-obesity/
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