Health tax proposed for salty, sugary, fatty foods that cause harm

The economic survey of 2024-25 released on Friday has sought stringent regulations for UPFs, or ultra-processed foods, that undergo a high degree of processing, are high in calories and cause long-term harm—even suggesting a higher tax rate on them to deter consumption.

- Priyanka Sharma

UPFs include soft drinks, packaged potato wafers, chocolate, candy, ice cream, sweetened breakfast cereals, packaged soups, nuggets, fries, etc., which are low on nutrients and contain extremely high levels of salt, sugar, or unhealthy fats, and are also often referred to as "predigested" food.

They are super unhealthy, which is well known, but they continue to attract consumers for various reasons, including artificially infused taste and attractive packaging. The attraction grows when top brands advertise such food as healthy, especially for growing children.

The economic survey has suggested that India's top food regulator, Food Safety and Standards Authority of India (FSSAI), could consider bringing such foods under strict regulation with a clear definition, standards, and labeling requirements.

The survey also suggested a "health tax" measure targeted specifically at brands advertising such unhealthy foods.