TAXING HIGH FAT SUGAR SALT (HFSS) FOODS

Issue in focus:

Negative Impact of HFSS food-

HFSS foods contribute to health issues like obesity, diabetes, and high blood pressure.
Global statistics show 70% of overweight and obese individuals are in Low- and Middle-Income Countries.
Non-Communicable Diseases (NCDs) burden in India has surged from 38% in 1990 to 65% in 2019, causing 1.2 million deaths annually.

Advantages of High HFSS Tax:

Taxes can address societal costs in health care and consumer-driven harms.
HFSS taxation aims to incentivize industry reformulation and promote healthier alternatives.
Differentiated tax rates based on nutritional quality can create a level playing field, making healthier choices affordable.
HFSS taxation, can deter unhealthy consumption, encourage reformulation, and contribute to a sustainable and equitable food system.

India’s Dietary Shift and Need for Taxation:

· India, a major sugar producer, witnesses a 13.4% CAGR in ultra-processed food consumption.

· Sales of snacks and soft drinks exceed $30 billion, indicating concerning dietary trends.

· Global trend suggests taxing HFSS foods as an effective approach; 16 countries, including the UK and Mexico, have implemented dedicated taxes.

· Kerala introduced a ‘fat tax’ in 2016, serving as an early example in India.

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