Why a ‘health tax’ alone may not solve India’s junk food crisis

Subscribe to enjoy similar stories. The growing consumption of ultra-processed food and aggressive marketing techniques by brands, such as pushing them to shelves labelled as healthy, have caught the government's eye. The Economic Survey 2024-25 highlighted the issue and suggested several corrective steps from awareness campaigns and stricter labelling to a ‘health tax’ to curb the excessive consumption of ultra-processed food.

Many ultra-processed foods have much more than the recommended daily intake of sugar, salt and fat, a Mint analysis of 21 products in seven categories showed. While breakfast cereals and flavoured yoghurt have extremely high sugar content, ready-to-make upma/poha flashed red on all three fronts: sugar, salt, and fat. Soya millet chips, burger patties and fried chicken, while low in sugar, had high salt and fat.

While sugar drinks in India carry an overall tax of 40% (28% GST plus 12% compensation tax), higher than the 10-20% tax that's common worldwide, ultra-processed and unhealthy foods do not face the same tax burden. An item-wise GST analysis by Mint shows the variation in taxation. Sugary/caffeinated/carbonated beverages attract the highest tax, while fruit juice drinks, cakes and cereals, among other items, are taxed 12% or 18%.

(An earlier analysis by Mint Plain Facts had found high sugar content in ‘fruit drinks’). Also read: A practical guide to help you cut back on processed foods Public health experts said there was a need to categorise unhealthy food items properly and levy higher taxes. “We have a cess on some products like cola but not on all sugary drinks like fruit juices with added sugar.