Tax on food high in saturated fat

21 November 2011

Question No. 37

Name of person: Dr Chia Shi-Lu

Question

To ask the Minister for Health whether the Ministry will consider (i) a tax onjunk foods that contain excessive amounts of sugar and/or saturated fat; and (ii) using the revenue raised for health promotion activities or to subsidise the cost of basic foodstuffs for needy Singaporeans.

Answer

1. My Ministry has explored introducing taxes on foods high in sugar and saturated fat as part of a strategy for addressing the rising problem of obesity in Singapore. Countries like the USA, Denmark, France and Canada have introduced taxes on sugared beverages, whilst Denmark became the first country to introduce a tax on food high in saturated fat just this October.

2. However, we are cautious about introducing similar taxes in Singapore. It is early days yet. First, there isn’t yet any international consensus on the effectiveness of taxation as an obesity control measure. There isn’t much clear evidence to show that such taxes decrease the rates of obesity. Second, there may be unintended consequences. Such taxes will raise food prices, which disproportionately affects Singaporeans with lowerincome, who spend a greater proportion of their income on food.

3. My Ministry will continue to study the impact of such taxes in other countries. We will also monitor the levels of saturated fat and sugar in our food supply and consumption pattern through regular surveys.

4. For now, we will use other ways to achieve the aim of promoting healthy eating among Singaporeans. The Health Promotion Board (HPB) is stepping up its efforts to do so. Foods that are lower in sugar and saturated fat content are available under the Healthier Choice Symbol (HCS) Programme. HPB is working with AVA on regulation of trans fat in Singapore. In addition, HPB works with food manufacturers and hawker centres to make healthier foods affordable to consumers. HPB is also collaborating with the industry to research and develop healthier foods through its newly established Centre of Excellence for Nutrition (CoEN).

5. I assure Dr Chia that we have sufficient funding for health promotion programmes, both at the national level as well as locally. There are also various assistance schemes to help low income families, such as the ComCare Fund administered by CDCs.