The Danish government has confirmed the country’s controversial fat tax will be withdrawn in January.

Denmark’s tax on saturated fat will be removed on 1 January, the country’s government confirmed to just-food today (12 November).

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The Danish government has said last month it intended to scrap the levy, which was introduced last year by the country’s previous administration.

The tax, set at DKK16 per kg of saturated fat, was introduced to try to combat obesity and ill-health in Denmark.

However, the levy drew criticism from the country’s food manufacturers, which questioned whether it would change consumer behaviour.

See Also:

In a statement today, the Danish government said the removal of the tax would lead to a loss in revenue of DKK1.18bn. However, it said the levy had caused “a number of technical and legal problems” and suggested the cost of the tax was not offset by the “limited” benefit to health.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The fat tax has given rise to a number of legal and technical problems and led to harsh criticism from the business community and others,” the government said. The primary factors behind that criticism is that the tax affects low-income groups hardest, hits business competitiveness through a significant administrative burden and increases cross-border trade.” Critics, the governnment said, had argued the tax could hit jobs.

It added: “It is estimated that the cost of fat tax is not commensurate with the limited positive health effects of fat tax.”

The Danish government also said it would cancel plans to introduce a tax on sugar.