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The Danish government is working to abolish the tax on soft drinks and beer. The abolition is similar to Denmark’s previous “fat tax”, which was imposed on foods with saturated fat content over 2.3 percent. The “fat tax” was imposed to promote healthy eating habits, but it was eliminated in late 2012. Danish consumers avoided the tax by going across the border to Germany for cheaper products. Similarly, consumers are cross-border shopping for soft drinks, so the Danish government will lift the soft drinks and beer tax in order to boost local sales.

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