It also eliminated a 5% sales tax on healthy produce
The Navajo Nation, which suffers from a 10% obesity rate, is imposing a 2% junk-food tax on its reservation beginning April 1.
Navajo president Ben Shelly approved the Healthy Dine Nation Act last November, which from this week will also eliminate a 5% sales tax on healthy fare including fresh fruits and vegetables.
Revenues from the sin tax will reportedly be channeled toward community wellness projects like farmer’s markets, vegetable gardens and greenhouses in the 27,000 sq. mi. of Navajo reservation spanning from Arizona and New Mexico to Utah.
Approximately 24,600 Navajo tribe members face obesity, according to the Navajo Area Indian Health Service. Type 2 diabetes has emerged as a growing public health concern afflicting up to 60% of reservation residents in some areas.
With nearly half of the Navajo youth population facing unemployment and 38% of the Navajo reservation at the poverty level, supporters say the act may serve as a prototype for sin taxes to curb obesity in low-income communities across the U.S.
By comparison, around one-third of Americans nationwide are classified as obese, the highest rate in the world.