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Budget 2017 government mulls tax on junk food and sugary drinks
1. Budget 2017: Government mulls tax on junk
food and sugary drinks
A proposal has been made by a group of secretaries on health, sanitation and
urban development to tax junk foodand sugar-sweetened beverages in the
upcoming Budget 2017 , reported Times of India.
The 11-member group also suggested that the money collected with tax
should go to the health services.
“In our presentation to the PM, we suggested higher taxes on junk food and
sugary beverages because consumption of such products is growing fast and
fuelling several lifestyle diseases like obesity, diabetes and heart disorders.
We have also suggested that revenue earned from such tax be invested in
health schemes,” said a member of the group.
Such a proposal has been in the pipeline for aver a year now. Also, the
government did form an inter-ministerial committee to discuss the proposal
2. to impose strong measures like higher taxes and restrictions on endorsements
and advertisements of such products on TV.
The FSSAI (Food Safety and Standards Authority of India) is already
working on mechanisms to regulate consumption of junk food. This is crucial
given the growing disease burden in India,” health secretary C K Mishra said,
adding the ministry was in support of the proposal made by the group of
secretaries.
According to the World Health Organisation, obesity in India has risen one-
and-a-half times in the last quarter-century. Heart diseases and diabetes
together result in 28 per cent of all deaths.
In July 2014, the Indian government increased the tax on sugar-sweetened
beverages by 5 per cent, hoping to curb consumption.
Sales of aerated beverages increased 10 per cent in 2014, according to the
Indian Beverage Association. This was before the tax was increased.
However, sales of aerated beverages declined 10 per cent between April and
September 2015.
