If you ask Kerala, “Watcha gonna do with all that junk?”, the Left run state will tell you that they’re gonna slap a “fat tax” of 14.5 percent on restaurants selling all that junk!
The Kerala government, headed by Pinarayi Vijayan has introduced a “fat tax” of 14.5% on foods like burgers, pizzas and doughnuts along with other junk foods in branded restaurants.
While it may come as a big blow to the quick service food industry of Kerala, there have been indications that the levy may not be passed on to the consumers. It’s up to the big restaurants to decide if they’re going to hike the prices up to make up for the taxes imposed on them.
“The move is business-unfriendly. It calls out the organised, eating out sector. We cannot pass the burden entirely to consumers,” said Unnat Verma, M.D, Pizza Hut.
While the government expects to generate Rs 10 crore annually with the new tax, fast food chains all over the state are apprehensive about hiking prices and considering the taxes as a part of regular expenses.
Wonder of the tax imposition will change the consumption pattern of junk food in any way.
News Source: NDTV