THE “INVISIBLE HAND” IN CASE OF FOODS WITH high LEVEL OF FAT, SUGAR AND/OR SALT IMPORTANCE OF FAT TAX

Abstract

17.5 million obese young persons live in the European Union. Proportion of overweight or obese is more than 60% in Hungary. It causes drastic elevation of the hygienic expenses. It is a fact that foods with high level of fat, salt and sugar are popular among young people, with promoting these products we contribute to childhood obesity. Lack of legislation on market of foods with high level of fat, salt and sugar might lead to success in a short run but only for the producing companies. Profit is realized at the producing companies, but costs are borne nationally as an increased nursing cost of obese children, young and adults. Possible solutions include the introduction of fat tax. A fat tax is a tax or surcharge that is placed upon fattening foods, beverages or individuals. The fat tax aims to discourage unhealthy diets and offset the economic costs of obesity. The fat tax is used in several countries, e.g. in Romania, Denmark, Finland, etc. The introduction of fat tax is supported e.g. by the WHO or the president of U.S. The fat tax in Hungary will be introduced in two steps in September 2011 and January 2012. The fat tax rate in Hungary is too low (ca. 10%). Many experts share this opinion. The “invisible hand†does not work in case of foods with high level of fat, sugar and/or salt, restrictions are necessary.