Report

The government is considering a higher tax on ultra-processed foods (UPFs), effectively introducing a ‘health tax’ to discourage the promotion of these products. The pre-Budget Economic Survey 2024-25, presented in Parliament on Friday (January 31, 2025) by Union Finance Minister Nirmala Sitharaman, emphasized this recommendation. The proposal urges the Union Ministry of Health and Family Welfare to set clear nutrient limits for sugars, salt, and saturated fats. These regulations would help control advertising, enforce front-of-pack warning labels (FOPL), and restrict marketing strategies targeting children under 18. The survey highlights the growing presence of UPFs in Indian diets and calls for a comprehensive strategy to address misleading nutritional claims. It stresses the need for closer scrutiny of UPF-related information to prevent deceptive marketing practices.

Strengthening Regulations on UPFs

The Food Safety and Standards Authority of India (FSSAI) may establish clear definitions and regulations for UPFs, including stringent labelling requirements. The survey notes that self-regulation has largely failed to curb misleading claims, making government intervention necessary.

Enhancing Oversight and Consumer Protection

To ensure compliance with food safety norms, the Economic Survey recommends stricter oversight of branded products. It calls for robust consumer protection initiatives to counter aggressive marketing and distribution tactics. Additionally, it urges the government to increase awareness of UPF-related health risks through educational campaigns in schools and colleges, aligning with existing health and lifestyle initiatives.

Promoting Nutritious Alternatives

The survey advocates for greater accessibility and affordability of healthier food choices. It recommends expanding subsidies for whole foods, millets, fruits, and vegetables while promoting local and seasonal produce. These measures aim to encourage healthier eating habits and reduce dependence on ultra-processed foods.

Source: The Hindu