Shocking news from Europe: “Denmark said Saturday it would scrap a fat tax it introduced a little over a year ago in a world first, saying the measure was costly and failed to change Danes’ eating habits.” An op-ed in The Copenhagen Post explains how Danes responded to the taxes – they increased the purchase of food from competing markets,
The way the fat tax is applied doesn’t actually encourage people to make healthier choices. What it has done, on the other hand, is encourage more Danes to shop in Germany. Our poll showed that, while in February 2011 one in three Danes shopped in Germany, the figure is now one out of every two.
When asked about why they shop outside Denmark, one in three named the fat tax as the primary reason. Long known as the place where Danes shop for booze, cigarettes and sweets, Germany, thanks to the fat tax, large discounts and professional marketing, has now become a place where Danes also shop for food.
German stores now send their brochures, proudly proclaiming “No fat tax here!”, to homes in the vast majority of Denmark. The savings come on top of what Danish consumers could already save in Germany due to a lower VAT and the generally lower price level there.
The news was lost on New York City mayor Michael Bloomberg, who will continue to push for additional regulations on “unhealthy” foods and beverages despite evidence that the consumption of both are inelastic.
