"The food processing ministry has supported our demand of rationalisation of GST rates on non-alcoholic beverages for faster growth of the sector. "Facts don't suggest that a higher sin tax works to change behaviour. A higher tax on carbonated fruit drinks is not a solution to the problem of obesity, given the small proportion of calories they contribute in the average diet. Singling out these products for higher taxation is, therefore, devoid of merits," IBA has stated in the letters. The association alleged that more unhealthy products like sweets and chocolates attract much less GST.

Source: Economic Times July 12, 2023 00:26 UTC