Ecuador Mulls Fast Food Tax

September 13, 2014 Taxation in South America

Fast Food TaxQUITO – Ecuador will use taxes to encourage locals to consume less foreign fast-foods, and eat more locally produced healthy foods.

Over the weekend the President of Ecuador Rafael Correa announced that the government is currently considering implementing a new tax on unhealthy foods, such as fast foods and nutritionally empty fast foods.

Explaining the need for a tax on unhealthy foods, the President said that :”…People are dying from bad food, not a lack of food. People will stop eating so many McDonald’s and Burger King hamburgers [with the tax]. This favors the production of our traditional gastronomy.”

The exact details of the tax have not yet been revealed, but the president did indicate that the tax is aimed at large fast-food outlets and major international chains, such as 30 McDonald’s and 15 Burger Kings already in the country, and is unlikely to affect street food sellers and small local cafes.

It is estimated that one third of all adults living in Ecuador are currently medically overweight, and the new tax is intended to improve the situation, as individuals may opt to consume less high-fat foods.

Photo By: ?ick Perrone