GST 2.0 and Public Health: The Need to Link Tax Policy with Food Regulation UPSC NOTE

GST 2.0 and Public Health: The Need to Link Tax Policy with Food Regulation

Prelims: Indian Economy (GST); Social Development (Public Health, Nutrition, Non-Communicable Diseases - NCDs); National Bodies (FSSAI); Government Policies.
Mains:

General Studies Paper 2 (Health & Governance): Issues relating to development and management of Social Sector/Services relating to Health; Government policies and interventions for development in various sectors.
General Studies Paper 3 (Economy): The impact of fiscal policy (taxation) on social sector goals.

The GST 2.0 reform, effective September 22, is expected to lower the price of many daily essentials, but the article warns of potential public health consequences.
Reducing the tax on unhealthy foods high in sugar, such as chocolates, jams, and other sweets, from 12-18% to 5% could lead to increased consumption.
This will exacerbate the rapidly growing threat of Non-communicable diseases (NCDs) like diabetes and heart disease in the country.
To address this issue, the article strongly advocates for linking tax policy with food regulations.
The Food Safety and Standards Authority of India (FSSAI) should mandate Front-of-Pack Labelling (FOPL) that simply displays health information on food product packaging.
If FOPL warns that a product is high in sugar, salt, or fat, it should not be given the reduced 5% GST rate. Instead, it should be taxed at 18% or more.

Stronger laws are also needed to regulate advertising of unhealthy foods targeting children.

Learnerz IAS | Concept oriented UPSC Classes in Malayalam