Navajo Nation Council Approves “Junk” Food Tax
According to news sources, the Navajo Nation Council has approved legislation
that would impose a 2-percent increase in sales taxes on so-called junk
food, which, if approved by Navajo Nation President Ben Shelly, would make it
the first Native American-governed territory to do so. The council also passed
legislation eliminating a 5 percent sales tax on fresh produce and other
healthy foods such as fruits, vegetables, nuts, and seeds.
Known as the Healthy Diné Nation Act and aimed at curbing obesity and
its related diseases, the legislation would increase the sales tax from 5 to 7
percent on sugar-sweetened beverages and snacks low in essential nutrients
and high in salt, fat and sugar, including chips, candy, cookies, and pastries. According to some estimates, between 55 and 85 percent of the food available
in grocery or convenience stores on the Navajo reservation is deemed
junk food. The additional tax revenue would reportedly be used to develop
wellness centers, parks, basketball courts, trails, and swimming pools.
Opponents, including some Navajo lawmakers, predict that the tax hike
would drive residents to purchase items such as soda and potato chips
outside the reservation. “We’re certainly going to see dollars leave the Navajo
reservation,” a council member said. See The Wall Street Journal, January 31,
2014; IndianCountryTodayMediaNetwork.com, February 1, 2014.
Issue 512
