Denmark Dumps Fat Tax After Food Prices Rise

Taxes make stuff more expensive? Who knew?

The Danish government has said it intends to abolish a tax on foods which are high in saturated fats.

The measure, introduced a little over a year ago, was believed to be the world's first so-called "fat tax".

Foods containing more than 2.3% saturated fat—including dairy produce, meat and processed foods—were subject to the surcharge.

But authorities said the tax had inflated food prices and put Danish jobs at risk.

The Danish tax ministry said it was also cancelling its plans to introduce a tax on sugar, the AFP news agency reports.