NEW DELHI: A national think tank on nutrition has urged the Finance Minister and GST Council Chairperson Nirmala Sitharaman to classify foods high in fat, sugar, or salt (HFSS) and ultra-processed foods (UPFs) as 'sin goods' or demerit goods, as they are linked to adverse health impacts. The think tank said that these products should attract the highest GST slab to discourage their consumption.
In a letter addressed to Sitharaman, Nutrition Advocacy in Public Interest (NAPi), which consists of independent medical experts, paediatricians and nutritionists, also said that additional revenues generated from such taxation should be used to fund health promotion, nutrition education, and incentives for the production of minimally processed foods.
Dr Arun Gupta, a paediatrician, nutrition advocate and NAPi Convener, told TNIE, "Considering rising consumption of ultra-processed food products and resultant obesity, the GST council could consider these products to be placed in the highest brackets and make it a health tax."
"The revenue thus generated may be used for incentives to minimally processed and whole foods to enhance healthy eating patterns," he suggested.
The experts, who included Dr Vandana Prasad, Community Paediatrician, Public Health Resource Network (PHRN) and Jan Swasthya Abhiayan; Prof. HPS Sachdev, Senior Paediatrician and Epidemiologist and Deepika Srivastava, former senior adviser Economic Advisory Council (EAC) to the Prime Minister, in their letter expressed "deep concern" regarding the rising burden of obesity, diabetes and other non-communicable diseases (NCDs) in India. They said these are directly linked to unhealthy dietary patterns driven by high consumption of HFSS and UPFs.
"This fact calls for reducing their consumption," the letter stressed.
The letter highlighted that the Union Health Ministry issued a statement in 2021 that pointed out the growing epidemic of NCDs and its close association with unhealthy diets. It said that recently, Union Health Minister JP Nadda also underscored the vulnerability of children to unhealthy foods and the marketing practices that promote them.
Quoting the Dietary Guidelines for Indians 2024 (Indian Council of Medical Research-National Institute of Nutrition) – ICMR-NIN report, the health experts said it provided clear evidence that over 56.4 per cent of deaths in India are related to unhealthy diets, with HFSS and UPFs identified as major contributors.
They said this is consistent with the Economic Survey of India 2024-25, which identified dietary risks due to UPFs as a significant driver of health and economic burdens and called for stringent regulations.
UPF's consumption is sharply rising in India, from $900 million $ in 2006 to $37 billion $ in 2019, according to Euromonitor. "So is obesity and diabetes showing a rapid rise during this time period. Given that unprocessed and minimally processed foods are expensive, it drives people to buy the cheaper UPFs," the letter added.
Thus, they suggested that the GST Council, in its meeting next week, could classify HFSS and UPFs as 'sin goods' or demerit goods, alongside tobacco and alcohol, given their established negative impact on human health, harmonising with and using the definitions provided in the Dietary Guidelines by ICMR-NIN.
"Place these products in the highest GST slab (28 per cent or above) to discourage consumption through appropriate pricing," said the letter, which was also signed by Dr Rekha Harish, former Professor and HOD of Pediatrics, Hamdard Institute of Medical Sciences and Research (HIMSR) and Professor and HOD of Pediatrics, Government Medical College and Hospital (GMC) Jammu; Prof KP Kushwaha, Pediatrician and Former Principal, Baba Raghav Das Medical College, Gorakhpur, UP; Dr Prasanta Tripathy, Co-founder Ekjut; Dr JP Dadhich, child health and nutrition advocate; Dr Nupur Bidla, social work professional and Reema Dutta, public health and nutrition professional.
To buttress their suggestion, the experts also shared that global experience affirms the effectiveness of such fiscal measures.
Citing Mexico as an example, they said that in 2014, the government taxed sugary drinks and calorie-dense snacks. This led to a measurable decline in purchases and increased substitution with healthier alternatives.
Similarly, in 2016, Chile's government levied higher taxes combined with front-of-pack warning labels, which significantly reduced consumption of unhealthy drinks by 24 per cent, the letter added.
"A strong fiscal measure such as higher GST for HFSS and UPFs will not only reduce consumption but also help halt obesity and generate resources to strengthen public health systems. We, therefore, urge the GST Council, in its deliberations on September 3-4, to take cognisance of this urgent need and align India’s tax policy with the nation’s nutrition and health priorities," the letter added.
