’Fat tax’ proposed to fight obesity

Primary target to be hamburgers, fried chicken and pizza

By Kang Seung-woo

With obesity emerging as a serious social problem, there are growing voices demanding measures for the medical condition.

And a so-called “fat tax” has been thrust into the limelight as one of few solutions to deal with it. A fat tax is one placed upon unhealthy foods.

A research fellow at a state-run think tank insists that the government take the idea seriously in the belief that it would primarily contain the increasing obesity rate and furthermore contribute to boosting the coffers of the national health insurance.

“Although the nation’s obesity rate is relatively low compared to those of other countries, it has been on an uptrend of late, which leads to high medical expenses. I believe that a fat tax imposed on foods with excessive bad nutrition such as trans fats would be able to reduce obesity more than anything else and would help lower related costs,” Kim Dae-hwan, a director of the department of aging research at the Korea Insurance Research Institute (KIRI), said in an interview with The Korea Times.

According to the Ministry of Health and Welfare, the nation’s obesity rate stood at 30.8 percent of all people over 19 in 2010, with 36.3 percent of all men overweight last year, compared to 24.8 percent of women. Obesity among men rose steadily from 1998 through 2007.

He said that the primary target of the tax will be junk food with little or no nutritional value, including hamburgers, fried chicken and pizza, which are seen as main culprits for the problem.

Critics say that main consumers of fast food are ordinary people, who are easily affected by inflation and they will fall victim to the new system.

“If people continue to eat junk food without the fat tax, they might face a worsening situation in terms of health. Revenue from the tax can be spent on policies that are beneficial for them such as anti-obesity programs,” said Kim, who recently published a report on the fat tax.

“In addition, the fat tax will force fast food franchises to produce much healthier items, which will be an advantage for their consumers.”

The idea has been drawing attention all over the world.

Denmark started to impose a tax on such foods as butter and oil for the first time in the world in October last year, while Hungary is also levying one on soft drinks, pastries and salty snacks. France recently approved a fat tax on sugary soft drinks in a bid to combat soaring child obesity and the United States and several countries are also considering introducing this kind of measure.

However, the Korean government has officially voiced its opposition.

“It is not desirable to introduce a new tax on foods given our own situation,” the finance ministry said Wednesday. It said that the nation has a relatively low level of obesity among its citizens and an additional tax on foods could hurt low-income earners more than others by increasing food prices, the ministry explained.

According to related data, the social cost brought about by hypertension, diabetes and high cholesterol levels stemming from obesity reached about 1.8 trillion won in 2008 and the steady rise is likely to pose a risk to the deficit-ridden national health insurance system.

Kim added that the national health insurance is expected to face a threat to its existence, as its deficit is estimated to reach 50 trillion won in 2030.

“The government should not be laid-back and scramble to prepare for measures to solve the problem,” he said.

“If the government does nothing on the issue, citing a relatively low level compared to other countries, notwithstanding the sharp increase in the obesity rate, it will be like seeing the doctor after you are dead.”