Indian state imposes 'fat tax' on junk food

The Kerala state government also hopes to make an additional Rupees 100 million from this 'fat tax'. Photograph:( Getty )

PTI Thiruvananthapuram, Kerala, India Jul 08, 2016, 02.29 PM (IST)
A 'fat tax' of 14.5 per cent on burgers, pizzas and other junk food was proposed in the budget tabled by the government of the south Indian state, Kerala. The tax, if cleared, will be levied on ''burgers, pizzas and pasta served in branded restaurants". 

The state government hopes to raise a corpus of Indian Rupees 100 million from this move.

Packaged wheat products will also be taxed. Those buying coconut oil that is used for cooking and other domestic purposes will have to pay 5 per cent additional tax.

A green tax for vehicles more than 10 years old has also been proposed in the Left Front government's budget on Friday. The budget provides for a Rupees 120,000-million 'anti-slowdown package' for taking up development projects.

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