Kerala levying 14.5% tax on junk food gets the thumbs up from nutritionists. But why should mithai and dal makhni be spared, question fast food restaurateurs
Can pinching the pocket prove healthy? The recent introduction of fat tax by Kerala government has raised a debate with the government being optimistic that an additional 14.5 per cent tax on junk food will ensure the customer opts for more healthy food options, nutritionists being hopeful that it’ll curb teenage obesity, but Quick service restaurants (QSR) finding the decision unfair.
Ground check
The government should have done a proper ground check before implementing any such rule, feels Rohit Malhotra, country manager, Barcelos India and adds, “I don’t think it is the right move. We need to go beyond the burgers and doughnuts and French fries. It needs to be done more scientifically. The government needs to analyse the percentage of fat in a particular kind of food that can be taxed to begin with.”
Adding to his point, Samira Chopra, director, Cybiz Bright Star Restaurants Pvt. Ltd. explains, “I don’t believe the ‘Fat Tax’ is the answer to any sort of obesity issue among teenagers. There are so many issues with this proposition. Firstly, if the aim is reducing obesity through controlling food substances, why not tax all sorts of fattening food items irrespective of their cuisine? Indian food items like dal makhni or paranthas are considered fattening, so are deep fried Chinese dishes, etc. Obesity is not only caused by ‘fat’, it’s also caused by sugar or a highly sedentary lifestyle. Having said that, do we also plan to levy a sugar tax on every Indian sweet chain?”
An unfair move?
It is unfair that only some eateries/food items have this tax imposed on them, feels Rohit. “If one observes the Indian food industry, the unorganised sector is extremely large with street vendors and standalone restaurants, what about them?” he questions, adding, “Has the government done any check on the kind of oil or bun used by the streetside burger seller? Without even checking our quality, they are terming us unhealthy. Many of the QSRs use organic and healthy means to make their dough. So, I would like to point out that we are as healthy as any product sold in the market under this banner. So, why only single us out?”
Counter point
As per WHO, the number of overweight or obese young people increased from 31 million globally in 1990 to 44 million in 2012. The worrying aspect is that a vast majority of overweight children live in developing countries (including India), where the rate of increase has been over 30 per cent higher than that of developed countries. Keeping this in view, as a precaution, globally, countries have put in place certain norms like banning junk food in schools, regulating advertisement and imposing taxes. Poonam Gupta, nutrionist and director at Gold’s Gym Gurgaon, shares, “India is the third most obese country in the world. Obesity amongst 13-18 year-olds has increased to 29 per cent in last five years. An initiative like this is the need of this hour.” She adds, “In a country where home food is considered to be the best, our young generation is hooked on fast food which is completely unhealthy. First, they eat unhealthy, then they complain of stress and then they say they are sick.”
Explaining why more states should implement such taxes, D. Jayasshree Todkar, Laparoscopic and Bariatric surgeon, director — JT Obesity Solution and Hiranandani Hospital states, “Government of India should and must make rules and implement them with respect to rising obesity and diabetes in Indian population. The fatal combination of obesity and diabetes has been declared the biggest threat to the Indian population for this century by WHO. Fast globalisation and false ideas of affluence in society have caused a steep rise in childhood and adolescent obesity. The food industry is into production-processed foods without any nutritive value. Pizzas, burgers, chips, soft drinks packaged in a lucrative manner are adding fuel to obesity in society.”
Giving the move a thumbs up, Puja Sharma Vasisht, senior nutritionist, Parentune, says, “Most western countries are already implementing fat tax and it is actually making an impact. A move like this forces the customer to notice that ‘fat’ made it costly and s/he will try to know the ill-effects of consuming fatty food. Introducing a ‘fat tax’ can potentially arrest a whole spectrum of junk food-related illnesses such as obesity, hypertension and diabetes.
Besides making foods such as burgers and pizzas more expensive, it would also remind consumers that what they are about to consume is unhealthy and dangerous. Junk foods have zero nutrition. A certain amount of regulation has to be brought in to change the habits of people.”
Corrective measures
“While the sentiment is correct, I don’t believe the approach is. Balanced meals, exercise and education is what’s important,” says Samira and adds, “The government should develop or enhance the class curriculum on nutrition and health and boost the appeal of physical exercises. This benefits every student (irrespective of his/her food habits). Build gyms or sports centres in colonies and schools and encourage healthy eating habits. We should follow examples of countries having campaigns like ‘Got Milk?’ which focuses on the importance of having milk, and thus calcium in one’s diet, we have had campaigns on promoting eating of proteins like eggs. Why don’t we as a nation send out positive messages to the people? it’s better to enable a generation through education and develop a culture of a better lifestyle than imposing a tax that will simply become a part of one’s life after a few months of hype.”
Adding to her point, Rohit states, “There is no point in choosing an approach that doesn’t cover all enablers of obesity. If the purpose is to simply impose a tax on something causing obesity, one could even go a step further and impose taxes on video games, TV, mobile phones, etc. that might discourage exercise. However, that won’t solve the problem.”
Impact on the market
According to Rohit, if more states plan to implement such taxes, foreign direct investment will be largely impacted. “India is currently witnessing a food revolution with global brands entering the market, additional taxations will only slow down the market growth. Corporates will be forced to either keep a check on their margin or make the customer pay more,” he avers.
Adding to it Samira says, “There could be a small impact in Kerala; however, the industry is smaller than North and West India. For those who wish to eat out and are more price elastic, taxes may not stop. But this could affect the ticket size of the cheques as a person might order less in order to be more frugal instead of not eating out at all. From the total population affected by this tax, the price-sensitive consumer will be reducing their average number of outings.”