ICMR-NIN's 'Let's Fix Our Food' consortium wants India to tax junk food and sugary drinks at 20-32% above current GST rates to cut consumption and raise public health revenue.
A policy brief led by Hyderabad's ICMR-National Institute of Nutrition (NIN) recommends adding a 20% to 32% health tax on top of existing GST rates for sweets, confectionery, and sugar-sweetened beverages, making India one of the few large economies yet to adopt such a fiscal measure against high-fat, salt, and sugar (HFSS) foods.
The brief was released in July 2026 by the 'Let's Fix Our Food' (LFOF) Consortium, spearheaded by ICMR-NIN, which is based in Hyderabad. It targets childhood and adolescent obesity, which public health researchers say has worsened sharply over the past two decades. The World Health Organization counts over 70 countries that already tax sugar-sweetened beverages. India is not among them, and the brief argues that gap needs to close.
What changed
The numbers in the brief tell a clear story about how Indian diets have shifted. Per capita sugar consumption rose from 22 grams per day in the 2000-2010 period to an estimated 68 grams per day by 2021. Salt intake climbed from 9 to 12 grams per day, well above the WHO's recommended maximum of 5 grams. Fat consumption jumped from 21 to 54 grams per day over the same period. These are not marginal changes. They represent a near-tripling of sugar intake within roughly two decades.
The consequences show up in disease data. The brief links rising HFSS consumption to non-communicable diseases, type-2 diabetes, and tooth decay in children and adolescents. Globally, overweight and obesity account for four million deaths annually, with nearly three-quarters occurring in low- and middle-income countries, a category that includes India.
The proposed tax structure is specific. For sweets and confectionery, currently taxed at 18% GST, the brief recommends an additional health tax of 20% to 30%. At 20%, the projection is a 12% drop in demand. At 30%, demand falls by 18%. Government revenues, the brief estimates, would rise by 46% to 120% depending on the rate applied.
For sugar-sweetened beverages, which already attract a 28% GST rate, the recommendation is a health cess of 22% to 32% on top. A 22% cess is projected to cut demand by 7%. A 32% cess could cut it by 13%. Revenue gains for state governments are projected at 17% to 40%.
The brief is careful to say that taxation alone is not enough. It calls for the tax to be paired with inflation-linked adjustments so the real value of the levy does not erode over time, subsidies on fruits and vegetables to make healthier options more affordable, incentives for food manufacturers to reformulate products, and stricter restrictions on junk food marketing directed at children. Without these accompanying measures, a tax on its own tends to shift consumption toward cheaper HFSS products rather than healthier ones.
It is worth noting what the brief does not specify. It does not name which products would be classified as HFSS for tax purposes, and it does not propose a regulatory definition that would sit within FSSAI's existing framework. FSSAI has been working on front-of-pack nutrition labelling rules for HFSS foods since at least 2022, but as of July 2026 those rules have not been finalised. The policy brief and FSSAI's labelling work are separate processes, and there is no confirmed coordination between them.
The brief also does not address how a health cess would interact with the GST Council's existing rate structure, which requires consensus among state finance ministers. Getting a new cess category through that process is a political exercise, not just a public health one.
What buyers and cooks should do
For consumers who already read labels, the brief's data on sugar, salt, and fat trajectories is a useful calibration point. The WHO recommends no more than 25 grams of free sugars per day for adults. At 68 grams per day average consumption, a large share of that is coming from packaged foods and beverages, not home cooking.
If you are buying packaged sweets, biscuits, namkeen, or bottled drinks regularly, checking the nutrition information panel for total sugars, sodium, and total fat per 100g is more actionable than waiting for a tax to change prices. FSSAI requires this panel on all packaged foods under the Food Safety and Standards (Labelling and Display) Regulations, 2020. The panel is there; most shoppers skip it.
For home cooks, the brief's numbers on salt are particularly relevant. At 12 grams per day average, Indian diets are running at more than double the WHO's recommended ceiling. Much of that comes from processed foods, pickles, papads, and restaurant meals rather than the salt added during cooking. Switching to whole ingredients and cooking from scratch does not eliminate sodium, but it does put you in control of how much goes in.
For parents buying snacks for children, the brief's focus on adolescent obesity is a direct signal. Products marketed as 'energy drinks', flavoured milk, fruit-flavoured beverages, and packaged sweets can carry sugar loads that exceed a child's daily recommended intake in a single serving. Until FSSAI finalises HFSS labelling rules that would make this clearer on the front of pack, the back-of-pack nutrition table is the only tool available.
The LFOF Consortium's brief is a recommendation, not law. Whether the GST Council takes it up, and on what timeline, is unknown. What is clear is that ICMR-NIN, one of India's most authoritative nutrition research bodies, has now put a specific tax figure on the table, and the public health case behind it is grounded in two decades of consumption data.