‘Fat tax’ levied by Kerala govt shows that all’s not well in God’s own country

The 14.5% ‘fat tax’ announced by Kerala on 8 July on fast food like pizzas and burgers is an indicator that when it comes to health, all’s not well in the state. [caption id=“attachment_2650574” align=“alignleft” width=“380”]  Representational Image. PTI[/caption] In his budget speech Finance Minister Dr. Thomas Issac announced that the tax would be imposed on branded restaurants selling pizzas, burgers, tacos, doughnuts, sandwiches, pasta, burger patty and bread-filling, according to media reports. Fast food chains like McDonalds and Pizza Hut will be affected. But is there really a public health crisis of proportions that warrant a tax to discourage the consumption of junk food high in salt, sugar and fat? When it comes to Kerala, perceptions are coloured by its high Human Development Indicators. The state has impressive achievements in health, education, nutrition and standards of living, way above the national average. However, Kerala’s reputation as one of the most developed states in India masks certain failings in its model of development, particularly health. Kerala has done particularly well in the area of mortality rates, sex ratio and life expectancy. In fact, the state is way above the national average. However Kerala also has one of the highest incidences of lifestyle diseases like diabetes and heart attack. Apart from this infectious diseases like dengue, chikungunya and hepatitis have reappeared in the state and deaths from road accidents, suicides and alcohol consumption remain abnormally high. However, a ‘Fat tax’ in a state like Kerala may seem a bit odd, considering the state doesn’t have too many outlets serving Western fast food, and even then only a certain section – the young upwardly mobile middle class – patronizes these restaurants. But obesity rates in Kerala are on the rise. A report by the Kerala branch of the Indian Medical Association says that “Most adults and children in Kerala are overweight and obese, which means many of us are eating more food than we need.”Food patterns in Kerala have been shifting over the last three decades. Data from the National Sample Surveys shows that per capita consumption of fruits and vegetables is among the lowest in the state. Even the choice of meat has shifted from fish to fried meats. Apart from Western-style junk food there is a lot of local junk food which is equally energy dense. Fried snacks, soft drinks and food high in salt and sugar abound in Kerala and for the moment, a punitive tax on banana chips, sugary drinks and similar foods has not been imposed. Kerala’s healthcare system has also shifted focus from preventive services to curative services, with the mushrooming of private health facilities. People, with the means to do so, flock to corporate clinics and hospitals to cure themselves of lifestyle and communicable diseases. The ‘Fat tax’ has to be seen in this context. It is a first step in a preventive model of healthcare to cut obesity, especially among the young. But is it enough? This is where the jury is out. Until a proper cause and effect relationship is demonstrated between the tax and its ability to inhibit consumption of energy dense food there will be no way of assessing the efficacy of the tax. That will take a few years. But taxing ‘empty calories’ is not enough! There needs to be a parallel effort to promote the consumption of nutritious food and exercise, particularly among the young. As part of this effort, subsidies for fruits, vegetables and organic food, along with promoting sport and building the necessary infrastructure will complement the efforts to slim Malayalees down. But that takes money, which the government doesn’t have. The ‘Fat tax’ is probably all a cash strapped government can do at the moment. As a revenue earner it isn’t much, as the government’s own projection puts the figure at Rs 10 crore per annum which is a pittance, considering the Treasury is owed around Rs 24,000 crores in pending taxes. Kerala is the first state in India to impost a punitive tax on junk food (Western junk food, it is a ‘Marxist’ government after all). Examples of taxing the consumption of junk food from around the world have shown mixed results. Former New York Mayor Michael Bloomberg’s proposed ban on sugary drinks over a certain size fizzled out when it was challenged legally. Denmark introduced a fat cum sugar tax in 2011 and scrapped it the next year because it increased companies’ administrative costs and because Danes were hopping across the national border to buy junk food. Still, Kerala has lived up to its reputation as a politically conscious state by trying to do something within its limited means – in this case use fiscal measures – to tackle a public health crisis.