Denmark has stuck to its promise to abolish its 'fat tax' on saturated fats and the proposed sugar tax.
It initially announced the world first tax just over a year ago, imposing a tax on foods that contain more than 2.3 per cent saturated fats.
The tax was applied at the rate of 16 Krone (AUD $2.60) per kilogram of saturated fat as found in a range of foods such as pizza, biscuits, cake, milk, oils, meat and many pre-packaged foods.
This saw butter rise in price from 2.20 Kroner for 250 grams to 18 Kroner.
Since this time there has been a push for the introduction of a similar tax into Australia.
Public Health Australia believes a “fat tax,” similar to the one introduced in Denmark, would enable the food industry to reverse the current discrepancies in price between junk foods and healthier alternatives.
It believes the tax on foods with a high level of saturated fat would raise money which could be used to subsidise healthier foods.
However in August it was revealed that the tax had cost manufacturing jobs and driven Danes over the border to Germany to purchase the new highly taxed goods.
The Danish Tax Ministry has stated that "The fat tax and the extension of the chocolate tax, the so-called sugar tax, has been criticised for increasing prices for consumers, increasing companies' administrative costs and putting Danish jobs at risk.
"At the same time it is believed that the fat tax has, to a lesser extent, contributed to Danes travelling across the border to make purchases.
"Against this background, the government and the (far-left) Red Green Party have agreed to abolish the fat tax and cancel the planned sugar tax," the ministry said.