Editorial of the Day (20 Dec): Tax HFSS Foods, View it as a Public Health Imperative

Context: The consumption of High Fat Sugar Salt (HFSS) foods in  India, leading to an increase in Non-Communicable Diseases (NCDs) like obesity, diabetes, and hypertension.

Need to Tax HFSS (High Fat, Sugar, Salt) Foods

• Health Risks: In India, the rise in Non-Communicable Diseases (NCDs) due to unhealthy diets has been stark, climbing from 38% in 1990 to 65% in 2019, leading to about 1.2 million deaths annually.
• Economic Impact: In India, the cost was around $23 billion in 2017 and is projected to potentially soar to $480 billion by 2060. This underscores the significant economic impact of poor dietary habits.
• Increasing Consumption Trends in India: As the world’s largest consumer of sugar, India has seen a worrying surge in the consumption of HFSS foods.
  • The sales of snacks and soft drinks have notably tripled, crossing the $30 billion mark, indicating an alarming trend in dietary choices.

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Initiatives Undertaken Globally And In India

• Global Tax Initiatives: More than 60 countries have introduced taxes on sugar-sweetened beverages, and around 16 countries have implemented taxes on other HFSS foods.
  • Examples include Denmark, France, Hungary, Mexico, South Africa, the UK, and the US. Colombia’s recent legislation to tax ultra-processed foods is another significant step.
• Indian Initiatives: In Kerala, a ‘fat tax’ was introduced in 2016, later incorporated into the national Goods and Services Tax (GST) in 2017.
  • However, the current GST system in India does not adequately differentiate between products based on their health impacts, as seen with uniform taxation of aerated beverages irrespective of sugar content.

Moving Forward

• Clear Definition of HFSS Foods: Bodies like the WHO and ICRIER emphasise the need for clear definitions of HFSS foods by authorities like the FSSAI, to ensure transparency and effective policy implementation.
• Nutrient-Based Tax Model: A proposed model involves higher taxation on products high in fat, sugar, and salt, and lower taxes on healthier alternatives, to incentivize both manufacturers and consumers towards healthier choices.
• Public Health Focus of Taxation: The primary goal of HFSS taxation should be to enhance public health rather than just revenue generation. This includes encouraging the industry to produce healthier products and motivating consumers towards better dietary habits.
• Equitable Tax Implementation: It’s crucial to ensure that HFSS taxes are non-regressive, as seen in South Africa’s Health Promotion Levy, which led to a greater reduction in sugary drink purchases among lower-income households compared to higher-income ones.

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