Fat Tax: A Solution To India’s Growing Obesity Problem?

With the second largest population in the world India also holds the title of being the third most obese country in the world. Such an epidemiological analysis is honestly quite surprising since India being a developing country is portrayed on international media to be poverty stricken and malnourished. Originally obesity and other lifestyle were a disease were thought to be common amongst the financially elite afflicting the developed countries. So how is that we are now the victims of this so called ‘injurious luxury’, so much so that we happen to be the 3rd most obese country in the world?

There are multiple factors that answer that question. First and foremost India’s poverty is in fact significantly reducing, even though a visible change is still not seen.  Indians are earning far better than what they used too. People are spending more, and the rupee has more buying power than what it used too. With globalization and the government enticing international companies to ‘make in India’, Indians now have a variety of products to consume at their dinner tables.  Secondly with modernization comes fast lives and with fast lives comes fast foods and processed foods. Both are known to cause obesity amongst other diseases. The problem of the rise in obesity is a global one. There is not one country so far in the world that has managed to tackle the growing obesity problem. This point is reflected in the fact that the growing waist lines has led to various airlines now considering to increase their seat sizes for proper accommodation of hefty passengers.

In India, 20% of the population is overweight, with a rise in obesity amongst adolescents from 16% to 29% in the last 5 years. It has also been noted that the states of Bihar and Meghalaya excluded, women are more obese than men.  The state of Punjab shows the highest level obesity followed by Kerala and then Delhi. Given this statistics and the basic reasons for the rise of obesity in India, it would appear that the move by the Kerala government to introduce fat tax is a rational. But is it really and should the rest of India follow its suit?

Fat tax is an example of Pigovian tax, a concept introduced by Arthur Pigou in the 1920’s. Taxes such as fat tax, soda tax, sin tax are used by governments to channelize individuals away from a type of product or towards another as the case maybe. There are studies such as the one by Leonard H Epstein Et al titled “Price and maternal obesity influence purchasing of low- and high-energy-dense foods” that states that increasing the price of a food item does decrease its consumption. And adding a tax of 14.5% on fast food items such as pizzas, burgers, tacos etc. will do just that. Denmark introduced Fat tax in 2011 and withdrew it a year later claiming that the eating habits of the country had not changed. Perhaps the situation in Kerala maybe different, only time will tell. However, I am of the opinion that those who prefer fast foods will still go for it despite the price rise. And also feel that just like the Danish citizens claimed that the fat tax is a move by the government to in fact raise their revenue which the Danish government did succeed in. If the government is truly interested in improving the obesity situation in the state or the country they need to not only  apply fat tax but also make an attempt the reduce the cost of other healthy foods.  Other moves such as to increase awareness and introducing nutrition programs would also help but studies have shown that price alteration (by taxation or other means) is more effective in changing eating habits than nutritional education.

Fat tax is a good move but it does not cover all the junk foods that cause obesity. What about those street side sellers who provide oily samosas and vadas. Due to its limited coverage over select expensive and branded junk foods makes the fat tax to appear unreasonable. But one needs to realize that other cheaper foods such as those found in local restaurants and sold by street side vendors are the means of livelihood for many poor individuals. Such individuals probably don’t even earn enough to pay income tax or any other tax for that matter. It’s too much of a risk to make them increase their prices by levying fat tax on their products. There is every possibility that when the price of these products is increased their sales will reduce. Thus causing these sellers to go broke and affecting their only means of livelihood. These products are consumed far more than the junk food by those by branded outlets and the consumers are often the poor who may not have any other choice of food unlike the middle and upper class folk.

Fat tax is just a part of the answer to India’s obesity problem, it’s one move of many that need to be made in other to tackle the rising rate of lifestyle diseases that is attacking India. The government needs to come up with other supplementary and complementary solutions to this problem. Unless of course this is just a move by the government to increase its revenue. People also need to take their health more seriously and stop making excuses to hit the gym.


----Raghuvir Keni