Indian Govt. to soon Impose 'Fat Tax' on Junk Food
Meanwhile, Govt. of India is planning to impose a special food tax on all junk foods and soft drinks (which has no connection with GST cess on soft drinks). India has teased megacompanies with plans to impose a “fat tax” on junk foods.
Within the next month, India plans to frame draft rules requiring manufacturers to clearly display the fat, sugar and salt content of products on packaging. A “junk foods” tax could take a while longer, according to a senior government official.
As per reports coming in, PM Modi is personally overseeing the implementation of this tax, the idea for which originated after rising cases of obesity and diabetes are being reported in India.
Besides, new regulations would be framed, which would make it mandatory for all providers of junk food, soft drinks to correctly mention the amount of sugar and fat included in their products.
Kerala has already become the first Indian state to impose a special 14.5% ‘Fat Tax’ on all junk food. A pan-India fat tax on all junk foods will severely impact the $57 billion industry in the country. Earlier, Patanjali founder Baba Ramdev had asked Govt. to impose ‘Sin Tax’ on all soft-drinks.