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Sat May 26 08:40:38 SAST 2012

Calls for 'fat tax' to fund healthcare

HARRIET MCLEA | 09 December, 2011 00:2234 Comments
Fat tummy. File photo.
Image by: Gallo Images/Thinkstock

People who eat fatty food and drink sugary soft drinks could be taxed for their unhealthy habits.

A fat tax, or "innovative financing mechanism" idea was proposed by Dr Robert Fryatt, an economic adviser to the minister of health, at a National Health Insurance conference in Johannesburg yesterday.

Fryatt, who was a strategic planner at the World Health Organisation, said the fat tax concept was "getting clear support" from many countries around the world.

Other ways of raising funds to implement the universal healthcare programme were to further increase alcohol and cigarette tax.

Fryatt said that these sin taxes "can reduce consumption and bring in a considerable amount of revenue".

Mark Heywood, human rights activist from the lobby group Section 27 said the state is ''justified to raise money and change behaviours.

"We know it hits the poor, but it hits them on something that is bad for them anyway," he said.

Deputy director-general of public finance Andrew Donaldson suggested that any further increases on cigarette taxes were unlikely to be effective in raising revenue because of the high levels of cigarette smuggling in the country.

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Calls for 'fat tax' to fund healthcare

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COMMENTS [34]

BornintheRSA

Posted 169 days ago
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We don't need a nanny state. People should be accountable for the health results of what they ingest.
In practice, the taxes raised will not necessarily be used for health purposes. Just as we have no idea where the carbon tax on vehicles is being directed to.
Sounds like a bad idea but yes an "innovative financing mechanism" for the politicians.
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Sillysonofa

Posted 169 days ago
People who drink, smoke and eat unhealthy food are a major drain on the heath service. This is fact. You can look at studies done in other countries who have a national health service. This type of tax is absolutely appropriate and means those abusing their bodies are then paying proportionately for the additional health care they will need in the future.

The fact that the taxes will "not necessarily be used for health purposes" is a separate issue, which does not change the fact that this sort of funding is the way to go. I certainly don't want to be paying for people who have made bad decisions in regards to their bodies and health.
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RedCoat

Posted 169 days ago
Sillysonofa

"We don't need a nanny state" it is our right to choose is it not? The tax might be an idea, but those people providing for our own medical well being should then be exempt from the tax according to your arguement?
I wholeheartedly agree that i should not have to pay for someone elses unhealthy choices though.
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Sillysonofa

Posted 168 days ago
We don't need a nanny state, I agree. Let me frame my response. I have lived in the UK for a number of years and am now back in South Africa. They have a National Health Service funded by tax on pay amongst other things and a few years ago started looking at "fat tax". I always felt comfortable with the service the government offered and didn't feel the need to top up to private medical care. It's not perfect, but it works reasonably well. Tax and NHS deductions from my salary was around 22% of total. I was paid reasonably well. Here I am being paid a similar salary and my tax rate will aggregate to around 27%, then I need to pay medical aid costs on top of this. So South Africa is expensive if you value your health.

I strongly believe that all people should benefit from quality health care. I haven't been back long enough to experience South Africa's health infrastructure, but from all accounts it sounds dismal. If this processes improves the system and provides health care that meets minimum standards of quality, I'm all for it. There are clearly some issue to sort out within national and local government to improve efficiencies, get the skills in place to make it all work and ensure we get value for our money. Doing this may decrease the need for taxes elsewhere, but the burden on society create by those who are obese (UK estimated a direct cost of GBP4.2 billion) or prone to substance abuse is massive. And South Africa has it's fair share of drunken porkies running around. If you choose to abuse, you choose to pay the extra cost.

I haven't had a close look at how this is all being implemented, but I agree that if someone is using private health care, some form of rebate should be looked at as the person is no longer a burden to the state.
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the_original_MommaCyndi

Posted 168 days ago
an "innovative financing mechanism" = a new way to screw the middle class into extinction
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RedCoat

Posted 168 days ago
Sillysonofa

Well put.

The UK's national health system is a good system but has been in decline for years, the norm in the UK is to utalise the NHS as opposed to private, because private medical care is really the realm of the rich there.

You could apply the same argument to SA, but private care here is what i think everyone wants to have, even with the implementation of an NHS scheme here, i think most will still aspire to private care.

I do agree that if you dont care about your own health then do not expect others to pay for it, but in the UK that is how it has worked since its implementation, liberal attitudes to your fellow man and all......
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UDFSupporter

Posted 168 days ago
The effect of the proposed "fat tax" is that most of the politicians; MP's; MEC's ; councillors ;officials in the ANCWL ;executive of the ANCYL and the hundreds of their family and cronies will be funding the new tax. I have no problem with that.

benpetzer

Posted 169 days ago
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This somebody with nothing better to do.

seanred

Posted 169 days ago
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April Fool?

RedCoat

Posted 169 days ago
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"innovative financing mechanism"

LMFAO a PC term for a new tax......love it!

ooooooooo

Posted 169 days ago
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It is about as ludicrous as Kader Asmals statement a few years ago when he said that he will be taxing the farmers for the rain falling on their farms.

PhilK

Posted 169 days ago
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It’s mind blowing that people are willing t0 accept monthly deductions from their pay for medical aid but take no real interest in their health some deductions work out to literally thousands of Rands you are parting with each year. Some pay enough in medical aid to pay of a modest car in a year. All with the idea that if something happens to you or your family you have a medical aid that can back you up Bad news you are paying more and more for medical aid and getting less. If the car you paid thousands for acted like your medical aid you would complain but many don’t care when it comes to health.
They either strain medical aid and other health care services themselves by throwing away the thousands they spend on medical care by destroying their health in turn be it lack of exercise, being obese, smoking, drinking, risky sexual behaviour, eating junk and enjoying it. That fat biker chick should pay more for her risky lifestyle than what I do. Tax may not end up in the right place but it would make her realise how she waste.

MagMag007

Posted 169 days ago
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Next thing we'll be taxed for farting...
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BornintheRSA

Posted 169 days ago
In Malawi, you go to jail for that. So consider the path that this could go down to if we allow for a nanny state.
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RedCoat

Posted 169 days ago
The only thing that the SARS has not yet taxed is the male penis. This is due to the fact that 40% of the time it is hanging around unemlpoyed, 30% of the time it is hard up, 20% of the time it is pissed off and 10% of the time it is in the hole. On top of that, it has two dependents and they are both nuts.

Effective January 1st, 2012 your penis will be taxed according to size. The brackets are as follows:

10"- 12" Luxury Tax..........R300.00
8"- 10" Pole Tax.............R250.00
5"- 8" Privilege Tax.........R150.00
4"- 5" Nuisance Tax..........R 30.00

Males exceeding 12" must file under capital gains. Anyone under 4" is eligible for a refund. PLEASE DO NOT ASK FOR AN EXTENSION!!!

Sincerely, Ivor Biggun.

*****NOTE***** We are still waiting for answers for the following questions:

- Are there penalties for early withdrawals? - What if one's penis is self employed? - Do multiple partners count as a corporation? - Are condoms a deductible expense as work clothes? - Is there an additional tax if you are not circumcised?

GregQuinn

Posted 169 days ago
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Another day.. another tax. Raising taxes on alchohol and cigarettes is not going to stop people from smoking and drinking.. its just going to bleed the people of more money and make more politicians wealthy.

And what are they going to do with this extra money they get from this tax? I think we all know the answer to that. Countries that implement taxes for certain reasons give a detailed breakdown of how that tax money is used and the results.. Here we get taxed on things such as the 'carbon emissions tax' but what has been done with all that money? How has it been contributed to the environment?
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ianm.anning

Posted 166 days ago
You have a very good point about the usage of taxes. With the total lack of transparency, it makes sense to influence behaviour by doubling the taxes on cigarettes, tobacco, alcohol and then taxing all foods except basic foods, especially restaurants and take-away foods. The extra tax should be VAT to control spending and then gyms could be zero VAT. If it gets used by politicians it is still taxed because it is VAT. The connect to the medical cover does not exist.

MsLee

Posted 168 days ago
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What are they going to tax next? Toe-nail clippings? This is absurd ...

Can't believe Section 27 is supporting this nonsense!

As for the cost aspect of the argument, private medical aids already take individual health issues into account in their actuarial reckonings. The point about state services, though, is that ALL people are equally entitled to them, because the role of the state is to provide equitable access to social services. If fat people are taxed now, who's next? Blue-eyed people? Xhosa people?
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RedCoat

Posted 168 days ago
If 40 million people clip their toe-nails once a week at an average of 0.5g per 'clipping' that equates to 200 metric tons per week therefor 10,400 metric tones per anum.

I think you might be onto something here, some kind of tax per kg per houshold :)
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GregQuinn

Posted 167 days ago
Redcoat lol pls don't give the government any ideas.

Rightway

Posted 168 days ago
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SA does not need any more taxes. Cut the corruption and incompetence and we will have plenty of money. Trillions of rand lost for ever by the ANC morons.

Gym,s membership should be subsidised and all government officials cars should be confiscated. They can walk to work. Let the MEC,S start by there example and stop with parties and big feasts. They can also drop there blue light escorts and start walking.

Spitfire

Posted 168 days ago
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Another United Nations bufoon, trying to force his fascist views on the world. Greedy left wing governments like the corrupt ANC love these ideas. It puts extra money in their gravy train and allows them to fund social progammes that in effect becomes vote buying. South Africa already has a CO2 tax on new vehicles - but it is not used for environmental matters, but goes straight into the ANC gravy train - legalised theft, orchestrated by Gordhan. The global economic crisis is made worse by corrupt left wing governments sucking, what could be productive money into social engineering programmes, simply to control the masses. The number of government employees, from MPs down should be reduced by at least one third and this saving passed on to taxpayers - this will immediately put billions into the economy which in turn will create REAL jobs that will raise the GDP. The ANC economic policies lead by ex-union goonion Patel, failed wherever they were implemented in the world - and this fool is still trying to make them work here! To continue on this foolhardy route can only result in revolution as the tax base shrinks, jobs disappear and poverty increases.

BernardAshkenazi

Posted 168 days ago
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I agree with Sillysonofa. Fat people (unless they have real medical condition, which they can't help) does drain the health services. It also creates losses in GDP due to loss productivity because of medical complications that they have etc. A lot of the people complaining are probably only doing so because they themselves are overweight and would probably get taxed. Perhaps they should just eat less or actually go jogging on a regular basis.

the_original_MommaCyndi

Posted 168 days ago
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Where do they find these nincompoops?

If you are very physically active then your body requires fat as a fuel source. It is the highest energy source and a valuable one.

The brain requires sugar in order to function. So now define 'sugary'. Is it a teaspoon of sugar in your tea or an energy drink after training?

Unless they are considering the idea of checking everyone's BMI every week then this is just a pathetic waste of time.

As for the alcohol and cigarette taxes, well that is just ridiculous. Just look at Russia. Half the population is blind from drinking back yard moonshine. They put the vodka tax up and the cottage industries flourished. I really don't see how having half the population blinded by badly made mampoer is going to help the healthcare industry. Ja, and we already have more smuggled cigarettes in the country than legal ones so that is just going to become a lot more prevalent.

Chico

Posted 168 days ago
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I don't understand the problem: If you're fat (drink / smoke), you get sick earlier in life, you need medical care for a while, and then you die.

If you're thin, you get sick later in life, you need medical care for a while, and then you die.

Is the cost over a life-time significantly different?
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Sillysonofa

Posted 168 days ago
UK has estimated direct medical cost of obesity at GBP4.2 billion. The cost to the economy at large is estimated at at over GBP20 billion per year. Just over a 10th of our GDP. Granted, the UK has a larger population and is a 1st world country, so difficult to compare. Astronomical costs though.

BridgetJohnsen

Posted 168 days ago
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This is a long overdue measure....I couldn't agree more. Airline tickets should also be issued for a combined body weight/luggage allowance.....
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the_original_MommaCyndi

Posted 168 days ago
I'd agree with that.
Its not what he is suggesting though. He just wants to tax everyone (fat or not) that has a pizza and coke on movie night.

DanMeyer

Posted 168 days ago
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Well I don't smoke, rarely drink, and eat healthily. As a result I am happy, sharp, alive, and snappy. I say YAY to anything that encourages a happier lifestyle. But I do know that we have a corrupt, self serving, thieving bunch of thugs in government (mainly) and that the extra taxes will go to buying them new jets, homes for their multiple wives and child lovers, naked sushi fests, and gold watches.
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RedCoat

Posted 168 days ago
Well sushi is quite healthy ;)
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the_original_MommaCyndi

Posted 168 days ago
Strictly speaking, there is nothing such a thing as 'unhealthy' or 'healthy' foods. Its the quantity and variety which make the entire diet either 'healthy' or 'unhealthy'.

Water, in excess, is toxic. That doesn't mean that drinking water should be discouraged.

BarryPotgieter

Posted 168 days ago
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Only the rich can afford that lovely unhealthy fatty foods like smoked ham etc. and you cant find more fat people congregated in a room than the rooms and corridors of Parliament. DISGUSTING and it must stink very rank and sweaty among all those fat Officials.

Gus

Posted 168 days ago
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I am all for taxing folks who are clearly overweight as these folks end up screwing the medical system and we healthy types always end up subsidizing them. Go to any hospital now, you will find a great percentage of sick folks are actually hopelessly overweight and are in hospital BECAUSE of their shocking eating habits! The big problem is: How on earth do you tax fat people? The only possible way is to weigh people when they visit a doctor or when they go to hospital.

rasefatee

Posted 163 days ago
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The more the increase on tax the more the showerheadd marry more overweight woman who want be paying fat tax nxaa