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Taiwan mulls world's first junk food tax

Taiwan is planning the world's first tax on junk food in a bid to encourage the public to eat healthily and cut obesity rates, a report said today.

The Bureau of Health Promotion is drafting a bill to levy the special tax on food deemed unhealthy, such as sugary drinks, candy, cakes, fast food and alcohol, the report said.

Revenue from the tax would finance groups promoting health awareness or subsidise the island's cash-strapped national health insurance programme, it added.

The bill is expected to be submitted to the parliament for approval next year and could take effect around 2011, it said.

Taiwan would be the first government in the world to impose junk food tax if the bill is passed, according to local health advocacy group John Tung Foundation.