Introduction

- NITI Aayog and UNICEF have jointly commissioned a study proposing a health tax on foods high in sugar, salt, and fat, as well as sugar-sweetened beverages (SSBs).

- The tax under proposal is approximately 20-30%, which will be levied along with the Goods and Services Tax (GST).

- The directive underlying the proposal is to encourage healthier eating habits among the population.

Aim of the Study: Encouraging Healthier Eating Habits

- The study is aimed at influencing policies towards promoting healthier eating habits.

- It highlights the detrimental effects of sugar, salt, and fat-heavy foods on health and stresses the need for regulatory actions to control their consumption.

Predicted Impact of the Health Tax

- An essential highlight of this study is the predicted decrease in demand for bulk purchases of sugar.

- The study estimates that the health tax might curtail the sugar demand by 13-18%.

Addressing India's Health Challenges

- Many health-related challenges, such as obesity, are becoming prevalent in India, mainly due to poor dietary habits.

- As the number one consumer of sugar globally, India stands to significantly benefit from measures such as the health tax on unhealthy foods.

Evidences from Other Nations

- Successful implementation of health taxes on similar high-sugar products in countries like Mexico, Chile, Saudi Arabia, Argentina, and South Africa are referenced in the study.

- These cases demonstrate the potential success and benefits of implementing such a tax in India.

Key Takeaways

- The recommendation calls for the imposition of a health tax in addition to GST on foods high in sugar, salt, and fat.

- The main objective of this study is to encourage healthier eating habits and policy changes that support this initiative.

- The tax's imposition could decrease the demand for sugar by 13-18% in India.

- The tax could be a vital instrument in combating health challenges prevalent in India like obesity.

- Previous successful implementations of health taxes in countries like Mexico, Chile, Saudi Arabia, Argentina, and South Africa indicate its potential effectiveness in India.