Experts urge GST council to classify ultra-processed foods as demerit goods

By A Representative

The Nutrition Advocacy in Public Interest (NAPi), a group of doctors, public health experts, and nutrition advocates, has written to Union Finance Minister and GST Council Chairperson Nirmala Sitharaman seeking the classification of foods high in fat, sugar, and salt (HFSS) and ultra-processed foods (UPFs) as “demerit goods” under the Goods and Services Tax regime. In a letter ahead of the GST Council meeting scheduled for September 3–4, 2025, the group recommended placing HFSS and UPFs in the highest GST slab of 28 percent or more, citing their established links to obesity, diabetes, and other non-communicable diseases (NCDs).

The letter noted that over 56.4 percent of deaths in India are linked to unhealthy diets, as highlighted in the 2024 Dietary Guidelines for Indians issued by the ICMR–National Institute of Nutrition. It also pointed to the Economic Survey of 2024–25, which flagged the rising economic burden of NCDs and identified dietary risks from UPFs as a major factor. The Union Health Ministry and Health Minister J.P. Nadda have also drawn attention to the vulnerability of children to unhealthy food marketing, the letter stated.

Citing data from Euromonitor, the group said UPF consumption in India has surged from USD 900 million in 2006 to USD 37 billion in 2019, while obesity and diabetes rates have shown a parallel rise. It argued that unprocessed and minimally processed foods remain expensive, driving people toward cheaper UPFs. NAPi suggested that higher GST on these products would discourage consumption, while revenues could be earmarked for health promotion, nutrition education, and incentives to produce minimally processed foods.

The group drew on international examples to support its recommendations. Mexico’s 2014 tax on sugary drinks and calorie-dense snacks reportedly reduced purchases and encouraged healthier substitutions, while Chile’s 2016 policy of higher taxes combined with front-of-pack warning labels brought down consumption of unhealthy drinks by 24 percent.

NAPi maintained that similar fiscal measures in India could help curb the growing burden of NCDs and strengthen public health systems. The letter was signed by several eminent pediatricians, public health experts, and nutrition advocates, including Dr. Arun Gupta, Dr. Vandana Prasad, Prof. HPS Sachdev, and Ms. Deepika Srivastava, among others. Copies of the letter have also been sent to senior officials in the Finance Ministry, the Economic Advisory Council to the Prime Minister, and the Ministry of Health and Family Welfare.

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