More tax on junk food? Survey flags factors affecting health

Mental health issues and poor lifestyle choices are costing India billions in lost productivity, with some workers missing up to 15 workdays monthly, according to the government's annual Economic Survey released on Friday, which proposed a "health tax" to combat one of these aspects—the surging consumption of ultra-processed foods (UPFs).

- Rhythma Kaul

NEW DELHI:

In the economic survey 2024-25 tabled in parliament on Friday, the government cited a 2023 World Health Organisation report to highlight how India's consumption of ultra-processed foods has skyrocketed from $900 million in 2006 to $37.9 billion in 2019, marking a staggering annual growth rate exceeding 33%.

"A higher tax rate for UPFs may also be considered as a 'health tax' measure targeted specifically at brands/products that advertise," the survey stated, emphasising that self-regulation has proven ineffective globally. "It is not an exaggeration to suggest that the country's future growth potential rides a lot on this measure."

The report highlights that UPFs are food items high in fat, salt, and sugar (HFSS), with substantial evidence linking them to deteriorating physical and mental health.