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Association Between a State-Level Fat Tax and Fast Food Purchases.

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Area of Science:

  • Public Health
  • Health Economics
  • Nutritional Science

Background:

  • India is experiencing a rise in obesity, prompting public health interventions.
  • Kerala implemented a fat tax on unhealthy foods, which was later nullified.

Purpose of the Study:

  • To assess the impact of a state-level fat tax on fast food consumption in Kerala, India.

Main Methods:

  • A cohort study analyzed credit and debit card transactions from 2016-2017.
  • The difference-in-differences method compared fast food purchases in Kerala to 9 other Indian cities.
  • Data included over 238,000 accounts, aggregated at the account-year-month level.

Main Results:

  • During the fat tax period, Kerala's fast food purchase ratio decreased by 3.9 percentage points compared to control cities.
  • After the tax was nullified, the ratio further decreased by 5.6 percentage points relative to the pre-tax period.

Conclusions:

  • The Kerala fat tax was associated with a reduction in fast food purchases.
  • Future food tax policies require careful design, considering social and nutritional implications.