'Fat tax' for junk food proposed in the budget of Kerala.

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 The state government of Kerala has introduced a ‘fat tax’ on food items that fall in the category of junk food, like pizzas, burgers, tacos, sandwich among others. This is the first time in India that either the central government or any state government has taken any step against fast food. In his budget speech, the state's Finance Minister announced that a fat tax of 14.5% would be imposed on branded restaurants selling food like pizzas, burgers, tacos, doughnuts, sandwiches, pasta, burger patty and bread-filling. Fast-food chains like McDonalds, Dominos, Pizza Hut, Subway among others are likely to see a hit on their sales as they would be forced to up the prices and pass on the burden to consumers. It is likely that the move would evoke sharp protest from many fast food selling companies in the country.



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