Tax ‘HFSS’ foods, view it as a public health imperative

Subject :Science and Tech

Section: Health

India’s Dietary Shift:

India, a major producer and consumer of sugar, has seen a sharp rise in high-fat sugar-salt (HFSS) food consumption.
The processed food industry consumes 50%-60% of produced sugar, salt, and fat. Sales of snacks and soft drinks exceeded $30 billion, indicating concerning dietary trends impacting health and the economy.

Global Health Risks:

Consumption of HFSS foods is a major contributor to health problems like obesity, diabetes, and high blood pressure.
The World Bank’s 2019 report highlighted that 70% of overweight individuals live in Low- and Middle-Income Countries (LMICs), with a 55% increase in rural areas.
India’s Non-Communicable Diseases (NCDs) burden has surged from 38% in 1990 to 65% in 2019, causing 1.2 million annual deaths due to dietary risks alone. The economic impact was estimated at $23 billion in 2017, projected to reach $480 billion by 2060 if unaddressed.

Global Trends in HFSS Taxation:

Many countries are using fiscal measures like taxation to combat obesity. While sugar-sweetened beverage (SSB) taxes are common, HFSS food taxes are gaining traction.
Countries like Denmark, France, Mexico, and the UK have implemented dedicated taxes, setting models for others.
India experimented with a ‘fat tax’ in Kerala in 2016, later absorbed into the Goods and Services Tax (GST) in 2017.

Justification for HFSS Taxation:

HFSS consumption creates societal costs in increased healthcare expenses and internal harm due to limited consumer understanding influenced by aggressive marketing.
Taxes serve as a targeted tool to reduce detrimental habits, proven effective in reducing the purchase of unhealthy items in various nations.

Purpose of HFSS Tax:

Unlike revenue-raising taxes like those on tobacco or alcohol, HFSS taxation aims to incentivize industry reformulation towards healthier alternatives and encourage individuals to opt for healthier diets.
Properly designed, these taxes can be non-regressive and fiscally neutral.
The current GST rates on ultra-processed foods don’t consider nutritional content, applying uniform taxes regardless of varying impacts. This oversight limits the shift towards healthier alternatives.

Public Health Imperative:

HFSS taxation in India should be viewed beyond economics—it’s a public health necessity.
Effective taxes can deter HFSS consumption, promote healthier choices, drive food reformulation, improve public health, reduce healthcare burdens, and contribute to a sustainable food system when combined with nutrition education and effective labelling.

Key terms:

High Fat Sugar Salt foods (HSSF) are known for their negative impact on health.

A negative externality is something that impacts a person or people who are uninvolved in a situation. Example: Smoking cigarettes or burning coal.
Internalities: Harm caused to individuals due to limited understanding influenced by marketing.
Non-regressive Tax: A tax that does not disproportionately burden lower-income individuals.