Tax Sugary Drinks - WHO
A new WHO (World Health Organisation) Report says, "Taxing sugary drinks can lower consumption and reduce obesity, type 2 diabetes and tooth decay."
Fiscal policies that lead to at least a 20% increase in the retail price of sugary drinks would result in proportional reductions in consumption of such products, according to the report.
Reduced consumption of sugary drinks means lower intake of "free sugars" and calories overall, improved nutrition and fewer people suffering from overweight, obesity, diabetes and tooth decay.
Nutritionally, people don't need any sugar in their diet. WHO recommends that if people do consume free sugars, they keep their intake below 10% of their total energy needs, and reduce it to less than 5% for additional health benefits.
The Report also suggests:
• Subsidies for fresh fruits and vegetables that reduce prices by 10-30% can increase fruit and vegetable consumption.
• Taxation of certain foods and drinks, particularly those high in saturated fats, trans fat, free sugars and/or salt appears promising, with existing evidence clearly showing that increases in the prices of such products reduces their consumption.
• Excise taxes, such as those used on tobacco products, that apply a set (specific) amount of tax on a given quantity or volume of the product, or particular ingredient, are likely to be more effective than sales or other taxes based on a percentage of the retail price.
• Public support for such tax increases could be increased if the revenue they generate is earmarked for efforts to improve health systems, encourage healthier diets and increase physical activity.
In this year's Budget, Kerala had imposed a "Fat Tax" of 14.5% on burgers, pizza, tacos, donuts, sandwiches, burger-pattys, pasta, bread fillings and other cooked food items sold by branded restaurants. An additional revenue of Rs.10 crore is expected.
Will the GST regime take care of this?