A health tax of between 20% to 30% in addition to GST can be considered to be imposed on sugar, sugar sweetened beverages (SSBs) like colas and juices as well as foods high in sugar, salt and fat (HFSS), public health researchers have recommended in a study published in Journal of Health Policy and Planning.
The recommendation is an outcome of a UNICEF-funded project, and the authors hope that this study along with others will influence policies aimed to reduce consumption of sugar and related products. Niti Aayog is interested in understanding the impact of imposing health taxes and warning labels on food products for encouraging healthy eating practices in Indian consumers.
Dr Beena Varghese, health economist and consultant, WHO and a co-author of the study tells The Hindu that the study does not recommend taxing households on purchase of their regular ration of sugar. “The study insists that bulk consumers of sugar such as confectionery and sweet manufacturers may be taxed which may reduce their demand for sugar. When the higher costs are transferred to consumers, demand for such products is expected to reduce,” Dr Varghese says.
