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Denmark drops fat tax, shelves plans for sugar tax

The Danish government received worldwide attention in October last year when they introduced a fat tax as a means of trying to curb rising obesity levels, and also announced intentions to introduce a similar tax on sugar in 2013.

Now, in the wake of reports that the tax has cost food manufacturing jobs and is driving Danes across the border into Germany to purchase their clandestine cholesterol-inducing goodies, the government has back-peddled and will drop the tax on saturated fats and not introduce the sugar tax.

The tax was applied at the rate of 16 Krone (AUD $2.60) per kg of saturated fat as found in a range of foods such as pizza, biscuits, cake, milk, oils, meat and many pre-packaged foods.

The Danes have a well-established love of butter – their Lurpak brand is wildly popular and is sold in outlets across Australia and the world – which led to an outcry that the tax was an attack on Danish culture and all they held dear.

The government also intended to introduce a tax of sugary products such as confectionary, jams and other sweets from January.

Workers had claimed that the tax had led to lower sales, in turn forcing manufacturers to cut their workforce; they hope the announcement will mean that jobs are saved.  

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