Indian state passes 'fat tax'

Indian state passes 'fat tax'

NEW DELHI: The southern Indian state of Kerala has become the first state in the country to impose a "fat tax" on junk food in a bid to counter rising obesity.

Thomas Isaac, the state's finance minister, said the 14.5% tax would be levied on food including burgers, pizzas and sandwiches sold at restaurants and fast-food chains. he measure is included in the state government's new annual budget.

The government said it hoped the move would not only generate additional revenue for the state but also deter people from consuming unhealthy food.

"There has been an alarming trend in growth of unhealthy eating habits among Keralites and we hope the fat tax will be a deterrent," Rajan Khobragade, the state's commissioner of commercial taxes, told The Times of India newspaper.

However, most high-fat snacks and other fast-food items in India are still sold by largely unregulated street vendors rather than branded chains.

While India has high rates of malnutrition, lifestyle-related health problems including diabetes and obesity are also major issues, particularly in cities.

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