Hungary introduces "chips" tax on unhealthy foods

Jul 11, 2011, 17:50 GMT

Budapest - Unhealthy foods such as potato crisps, chocolate bars and fizzy drinks are to be subject to a new tax in Hungary under legislation passed Monday, which the government hopes will improve the nation's health.

Originally referred to as a 'hamburger' tax, local media dubbed the levy the 'chips' tax when it became clear that the government bill would not affect food offered by fast food restaurants.

Sugary drinks, pre-packaged cakes and salty snacks and food flavourings will be subject to the levy.

Potato crisps (chips) will be taxed at 200 forints, or just over a dollar, per kilogramme. This could raise the price of a standard 90g pack by around 10 per cent when the law takes effect in September.

Nevertheless, opposition politicians have said the tax does not go far enough, with left- and right-wing parties accusing Prime Minister Viktor Orban's conservative government of caving in to lobby groups.

However, a senior member of the governing Fidesz party, Janos Lazar, told reporters that new controls on fast food restaurants would be proposed this week after meetings with representatives on Tuesday.

In advertising aimed at children, 'particularly close attention' would be paid to the sugar and fat content of foods, Lazar was quoted as saying by the state news agency MTI.

Hungarians - heavy smokers and drinkers whose traditional diet is rich in pork fat and salt - have one the lowest life expectancies in the European Union. The government has said the revenue raised by the 'chips' tax will be used to fund public health awareness campaigns.