You may have to pay extra tax for pizzas and burgers after budget ?

Image result for pizzas and burgers
PM Modi has formed a group of secretaries consisting of 11 members who have been asked to recommend “imposition of additional taxes on foods with added sugar, salt and saturated fats.”

Well, let’s explain it to you in a better way. There would be a very few people who can say no to burger , pizza or food that are cheese laden or some fries. Now these people may require to pay a tax popularly called ‘fat tax’.

The reason is simple.

The additional revenue from this Fat Tax on junk food would be added to the health budget . This will help the government to increase budget in health sector, which is just 1.16% of the GDP now.

The only thing that is deterring the government from finalizing the decision is a nod from the Prime Minister. However to believe the experts, this ‘fat tax’ may be finalized on the budget this year.

However the term ‘ junk food ’ term isn’t yet included under Food Safety and Standard Act as of now.

Well intended
The move is definitely well intended. That’s what the group feels like. Consumption of junk foods, rich in sugar, salt and started fat is one of the reasons why young India is suffering from several lifestyle ailments. And this move is meant to discourage people from eating too much junk food.

Will this work?
Kerala has already introduced a similar tax in the state. So if you buy junk food, you would require to pay 14.5% as fat tax. Restaurateurs say, while the government coffer is getting richer, the people are still making a beeline at the places that serve junk food.

BI
 
 
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