Hungary imposes ‘fat tax’ on unhealthy foods

Food considered to be unhealthy, including crisps, soft drinks and chocolate bars, are now subject to a new tax in Hungary.

The new law, introduced on 11 July, is aimed at “improving the health of the nation”.

Initially called ‘the hamburger tax’, the measure was dubbed ‘crisps tax’ or ‘fat tax’ after the Hungarian government decided that it would not affect fast food restaurants.

The plan is to impose a 10 forint (3.7 eurocent) levy on products that contain “too much” salt, sugar, or fat, while increasing the tax on liquor and soft drinks by 10%, according to the Global Post.

The proceeds, estimated to be worth up to 30 billion forint (111 million euro), would pay for state-funded health care, which has a deficit of about 100 billion forints (371 million euro). Hungary is among the most severely indebted countries in Eastern Europe.

The bill will be put to parliament this summer and in all likelihood will easily pass, said Gabor Csiba, the author of the bill, who is president of the Strategic Alliance for Hungarian Hospitals and a member of the ruling Fidesz party.