Fat tax may have a negative impact on people on low incomes due to the increased prices. This is because typically people who are earning lo amounts of money buy food based on what they can afford. Usually a large portion of these people’s diets consist of fast foods, which usually contain high levels of fat. Because of this the price of these foods rise and make them unaffordable to some people. However, the benefits to the tax may include these people to start eating more healthily, causing more long-term benefits.
For people on medium to high wages, this change in price may not have much of an impact as it is a much small proportion of your income which will be sent. Therefore, the small increase in price may not change these peoples spending or consumption habits.
