Kerala govt imposes nearly 15% 'fat tax' on junk food

Pizza, burger, sandwich, among others are likely to be costlier as the Kerala government has announced to impose nearly 15% tax on such junk food.  

The state's new Chief Minister Pinarayi Vijayan-led government presented its first budget for 2016-17 on Friday, wherein it decided to impose  a 'fat tax' of 14.5% for burgers, pizzas and pastas served in branded restaurants, PTI reported. 

The budget was presented by its Finance Minister  T M Thomas Issac.

"The proposed 'fat tax' of 14.5% for burgers, pizzas and pastas served in branded restaurants would target an additional revenue of Rs 10 crore," PTI said quoting Issac as saying.

Kerala has become the first state in the country to impose 'fat tax' on junk food.  

Stating that the state was passing through a severe financial crisis due to various factors, the budget proposed an 'anti-slowdown package' of Rs 12,000 crore for taking up various development and infrastructure projects like roads, bridges and IT parks, the news report said.

Watch the news video report here-