Mains Marathon

Approach:

• Briefly introduce the issue and rationale for taxing ultra-processed foods (UPFs).
• In the body, examine the justification behind the recommendation and how this measure can address lifestyle diseases and improve public health.
• Conclude with a forward-looking suggestion.

Introduction:

The Economic Survey 2024-25 recommends imposing a higher 'health tax' on ultra-processed foods (UPFs) to address rising public health concerns. UPFs, high in sugar, salt, and unhealthy fats, contribute to lifestyle diseases like obesity and diabetes. This initiative aligns with global efforts to combat non-communicable diseases and promote healthier diets.

Body:

• Rationale Behind Higher Taxes: UPFs, such as soft drinks, packaged snacks, and fast food, are often advertised as healthy but contain excessive amounts of sugar, salt, and saturated fats, which contribute to long-term health issues.
  • The Economic Survey calls for a health tax targeting products that mislead consumers, particularly children, through attractive advertising.
• Impact on Lifestyle Diseases: Research shows that increased consumption of UPFs leads to diabetes, obesity, hypertension, and other chronic diseases.
  • According to a 2023 WHO report, India's consumption of UPFs surged from $900 million in 2006 to over $37.9 billion in 2019.
• Benefits of Imposing Taxes: A higher tax rate on UPFs can serve as a deterrent, reducing their consumption, particularly among lower-income groups who are more likely to purchase cheaper processed foods.
  • Similar initiatives in countries like Mexico and Denmark have shown that such taxes can lead to reduced intake of unhealthy foods and promote healthier alternatives.
• Regulatory Measures and Public Health: The Economic Survey also suggests implementing stricter labelling requirements and monitoring misleading advertising, particularly in schools and colleges, to create awareness about the adverse effects of UPFs.
  • The FSSAI could enforce clear standards for UPFs, helping consumers make informed choices and encouraging food companies to offer healthier alternatives.
• Global Precedents and Local Challenges: Several countries, including Brazil, Canada, and Chile, have already implemented taxes on ultra-processed foods and introduced health-focused regulations.
  • These measures have led to a reduction in consumption and better health outcomes. However, the challenge in India lies in balancing the tax burden on lower-income households, who may rely on affordable, processed foods.

Conclusion:

The Economic Survey’s recommendation to impose higher taxes on UPFs is a progressive step towards preventive healthcare. When backed by regulation, awareness, and affordable alternatives, it can significantly improve diet quality, reduce lifestyle diseases, and build a healthier India.