Coca-Cola urged India to lower the GST on aerated drinks to 34% and delay implementation, arguing against the proposed ‘sin’ tax classification.
In March 2017, the American beverage corporation Coca-Cola petitioned the Indian government for two significant changes regarding the Goods and Services Tax (GST). Firstly, the company requested a reduction in the tax rate for aerated beverages, proposing a decrease from 43% to 34%. Coca-Cola contended that its products should not incur a 15% cess on top of the 28% highest tax bracket, as they are neither luxury goods nor ‘sin products.’ Instead, the company suggested a cess limit of 6%. Secondly, Coca-Cola sought an extension for the GST implementation deadline, asking for it to be moved from July 1st to September, thereby providing businesses more time for a smooth transition.
This request from Coca-Cola emerged at a time when the government was scrutinizing the sugar content in various beverages, noting higher levels in products sold in India compared to those in Europe. Authorities were also exploring proposals to mandate the display of sugar and fat content on processed foods and drinks. Additionally, the government was contemplating the introduction of a ‘fat tax’ on unhealthy food items, an initiative aimed at combating rising obesity rates across the nation. This information was initially reported by Firstpost.
