The Malaysian Insider :: Features
The Malaysian Insider :: Features |
| Denmark to scrap world’s first fat tax Posted: 12 Nov 2012 02:47 AM PST  Denmark's 'fat tax,' which sent the price of butter up, is being scrapped. – shutterstock.com "The fat tax and the extension of the chocolate tax – the so-called sugar tax – has been criticised for increasing prices for consumers, increasing companies' administrative costs and putting Danish jobs at risk," the Danish tax ministry said in a statement. "At the same time it is believed that the fat tax has, to a lesser extent, contributed to Danes travelling across the border to make purchases," it added. "Against this background, the government and the (far-left) Red Green Party have agreed to abolish the fat tax and cancel the planned sugar tax," the ministry said. Denmark's centre-left minority government is made up of the Social Democrats, Social Liberals and Socialist People's Party, and requires support from other parties to pass legislation in parliament. The government and the Red Greens reached the agreement as part of their negotiations on the 2013 budget bill. The previous right-wing government introduced the fat tax in October 2011 to limit the population's intake of fatty foods. According to the Danish National Health and Medicines Authority, 47 per cent of Danes are overweight and 13 per cent are obese. "Now we need to try to do something else to address public health," Food Minister Mette Gjerskov said, news agency Ritzau reported. The fat tax has been levied on all products containing saturated fats – from butter and milk to pizzas, oils, meats and pre-cooked foods – in a costing system that Denmark's Confederation of Industries has described as a bureaucratic nightmare for producers and outlets. The measure added 16 kroner per kilo of saturated fats in a product. As an example, when the tax was introduced the price of a pack of 250 grammes (0.5 pounds) of butter rose by 2.20 kroner (RM1.13) to more than 18 kroner. Several food chains said Saturday they would lower their prices accordingly once the tax is abolished, Ritzau reported. – AFP/Relaxnews |
| Retailers bank on Diwali to open Indian wallets Posted: 11 Nov 2012 08:34 PM PST MUMBAI, Nov 12 ― Indian retailers hope to boost disappointing consumer spending with a frenzy of special offers during this week's Diwali festival, led by automakers crowding the market with nearly 20 new cars. Diwali, the Hindu festival of lights, has always been an auspicious time to splurge, sparking an annual race between retailers to provide the most attractive offers. But in this year's flagging economy, overcoming consumers' trepidation may prove to be a difficult task. "I haven't seen so many product launches in a short span of days ever," said Ankur Bisen, vice-president in retail with Technopak, an Indian consultancy firm. "Cars, luxury jewellery, watches, tablets, iPads, even Microsoft's Windows 8, retailers are trying new product launches to attract consumers," he told AFP. Months of gloom for the Indian economy have brought consumer spending down to seven year lows, according to the Fitch ratings agency, so businesses are desperately seeking a kickstart.  Gold retailers are hoping that Diwali will bring a boost in sales. ― AFP pic Auto dealers are offering a twin attraction—higher discounts on cars bought and better exchange prices for old cars—to boost what has been a forgettable year for India's car market amid rising input and fuel costs. Electronics giant LG has "blissful offers" to woo customers, giving away a range of Blu-ray players, camcorders or glasses—all 3D versions—free with selected high-end 3D smart televisions. Rival Samsung is offering a free Galaxy 7.0 tablet with the purchase of certain smart TVs, refrigerators or washing machines, while the hot-selling iPhone5 has also hit the shelves this month. Indian banks, struggling with bad debts, are also trying to cash in. State Bank of India, the country's largest commercial bank, has cut its processing fee on home and auto loans by half, for loans borrowed between mid-October to the end of the year. Others have taken similar steps to remain competitive and some have slashed their auto or home loan rates, despite the central bank's tight monetary policy, analysts said. Companies are hoping their eye-catching offers will tap India's expanding middle-class as it fast moves to a more Western-style consumer economy, but the Diwali spending rush has its roots in traditional India. "October is the start of the agricultural new year and generally festivals are times to 'bring in the new'," said Mahantesh Sabarad, auto analyst with Fortune Equity Brokers. With each festive season, the demographics of shoppers are quickly changing as more and more young people and women join the workforce, giving them disposable incomes to spend as they wish on mobiles, jeans and pizzas. "It's a no-brainer that Diwali will be competitive," said Pramod Gubbi, vice-president at Mumbai's Ambit Capital, as firms vie for these new consumer groups' attention. But the rush of discounts and offers still may not be enough to get consumers opening their wallets for pricier items in the current climate. A range of factors—rising fuel prices, food inflation, job uncertainties and muted wage hike expectations—are likely to hurt buying decisions, said Deep Mukherjee, director with India Ratings and Research, a Fitch group firm. "Big ticket items like autos, luxury products, vacations, may face a challenging demand condition," Mukherjee said. Even gold-buying, which usually peaks in Diwali and continues through to India's wedding season in December, is looking muted. Jewellery showrooms around Mumbai's Zaveri Bazaar have remained half-empty during the festive season so far, with the price of gold close to record highs. B. Mahesh, an executive in a textile export firm, said he had "reconciled to not splurging this Diwali". "I usually buy three branded pairs of shoes each year, one always in Diwali. But now I'm going to look for cheaper footwear. I do not see a Diwali bonus coming and prices are just too steep," he said. ― AFP-Relaxnews |
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