Denmark’s fat tax for dairy in 2011

Milk products in Denmark will be subject to a “fat tax” from July next year, according to the government in Copenhagen. Increasing health problems with obesity in the population is being touted as the reason for the levy which (counting a similar tax on fat meats) should bring an estimated EUR200 million per year into the state coffers.

Friction with the EU lawmakers has forced the Danes to dilute their fat tax demands so that cash will only be levied on food and drink containing a total 3.8% level of unsaturated and saturated fats. Above that, though, processors and importers will have to hand over EUR1.8/0 for every kg of saturated fats.

While standard drinking milk (3.4% fat) would therefore escape a tax, the Danish Dairy Board point out that it would mean a 30% increase in the price of butter and that even so-called low fat cheeses, normally regarded a relatively healthy when eaten in moderation, will be heavily penalised by the new tax.