'Fat tax' could be levied on junk food!

The British government may levy "fat tax" on junk food and sugary drinks in a bid to reduce obesity among consumers and reduce fiscal deficit, a media report said.

According to The Telegraph, the Food Standards Agency (FSA) - a UK government body protecting health and consumer interest related to food - is planning may consult on whether taxing such foods would encourage people to make healthier choices.

The "fat tax" would be applied to processed foods, snacks and sugary drinks in much the same way as taxes on alcohol and tobacco.

However, the FSA is also considering the possibility of imposing 17.5 per cent VAT to foodstuff like fat milk, butter and cheese to encourage consumption of products with less saturated fat.

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