New Delhi:A national think tank on nutrition has urged Finance Minister and GST Council Chairperson Nirmala Sitharaman to classify foods high in fat, sugar, or salt (HFSS) and ultra-processed foods (UPFs) as ‘sin goods’ or demerit goods, arguing that these products are linked to rising obesity and other health problems. They have recommended placing such foods in the highest GST slab to discourage consumption.
The appeal was made in a letter by Nutrition Advocacy in Public Interest (NAPi), a national think tank of independent medical experts, paediatricians, and nutritionists. The group suggested that the revenue from higher taxes should be used for health promotion, nutrition education, and encouraging the production of minimally processed foods.
The experts referred to the Dietary Guidelines for Indians 2024 by the ICMR-National Institute of Nutrition, which state that more than 56% of deaths in India are linked to unhealthy diets, with HFSS and UPFs being major contributors. They also pointed out that the Economic Survey of 2024-25 flagged dietary risks from UPFs as a significant factor in rising health and economic costs.
The experts argued that while unprocessed foods are often more expensive, cheaper ultra-processed foods are becoming the default choice for many families. They suggested that higher GST could both reduce demand and generate resources for public health.
The letter also shared global examples. In Mexico, a tax on sugary drinks and calorie-dense snacks in 2014 reduced purchases and encouraged healthier choices. In Chile, higher taxes and warning labels introduced in 2016 cut unhealthy drink consumption by 24%.
The group urged the GST Council, which meets on September 3-4, to consider this step. “A strong fiscal measure such as higher GST for HFSS and UPFs will not only lower consumption but also help control obesity and strengthen public health systems,” the letter said.
