A consortium of India’s top research institutions, led by Hyderabad-based National Institute of Nutrition (NIN), has recommended imposition of a health tax on High Fat, Sugar and Salt (HFSS) foods and Sugar Sweetened Beverages (SSBs).
The researchers’ group also called for restrictions on advertisements of such food products to children across all formats such as television and internet, as a measure to combat adolescent obesity and Non-Communicable Diseases (NCDs).
The consortium, titled ‘Let’s Fix Our Food’, recommended additional health tax of 20 percent to 30 percent on sweets and confectionaries, health tax of 32 percent on SSBs and HFSS. The group recently submitted its report to the Indian Council of Medical research (ICMR) and NITI Aayog.
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The reason for such a recommendation is to halt the epidemic of obesity and diabetes. “The country needs a comprehensive action plan that combines taxation with restriction on marketing of unhealthy foods, improved food labelling, and increased awareness and information about unhealthy foods,” the consortium’s report said.
Unhealthy foods are major contributors to obesity and related diseases. Sugar sweetened beverages and HFSS foods are important contributors to the rising burden of obesity, NCDs and tooth decay, in India. Overweight and obesity account for four million deaths annually and almost three-fourths of these deaths are in low and middle-income countries,” the Let’s Fix Our Food report stated.
The World Health Organization (WHO) recommends taxation as one of the most cost effective tools. Over 70 countries are using health tax as an effective tool for reducing consumption of SSBs and unhealthy foods. Increase in SSB prices by 20 percent may lead to reduction in consumption to around 20 percent, consortium reported.
About 20 percent increase in SSB prices may reduce overweight and obesity by 3 percent and type-2 diabetes by 1.6 percent in India. Taxes will increase revenues for the government and can be used to subsidize healthy food options like fruits and vegetables. There is, however, no clear health tax policy in India, as the existing goods and service tax (GST) does not differentiate between healthy and unhealthy foods.
The report made it clear how consumption of sugar and salt among the population in India has gone-up over the years.
“From 2000 and 2010, per capita consumption (grams per day) of Sugar increased from 22 gms/ day to 55 grams/day. By 2021, our estimate suggests that the consumption has gone-up to 68 grams per day. Consumption of table salt increased from 9 to 12 grams per day while fat increased from 21 gms to 54 gms per day,” the report said.
Following are the key highlights of the report:
• Additional health tax of 20 to 30 per cent on sweets and confectionaries
• Health tax of 32 per cent on sugar sweetened beverages
• 20 per cent increase in prices can reduce overweight/ obesity by 3 per cent and type-2 diabetes by 1.6 per cent
• Taxes will increase revenue for government can be used to subsidise health food like fruits
• Such a health tax is already being implemented in 70 countries
• Restrict advertisements of high sugar and salt food products to children across all formats
• Stringent implementation of Prevention of Misleading Advertisements, 2022.
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