Weight loss expert reacts to 40% GST on energy drinks, soft drinks, cigarettes: 'This move is just not a tax policy…'

Health experts say the government's decision to impose 40% GST on 'sin goods' is a public health-oriented move to reduce the consumption of unhealthy products.

The Indian government has introduced a 40% Goods and Services Tax (GST) on energy drinks, soft drinks, and other ‘sin goods’ like cigarettes and gutka to discourage their consumption and promote public health. This move aims to help reduce the burden of lifestyle diseases in India.

In an interview with HT Lifestyle, Dr Basavaraj S Kumbar, consultant, internal medicine, Aster Whitefield Hospital, Bengaluru and Dr Rajiv Kovil, head of diabetology and weight loss expert, Zandra Healthcare and co-founder of Rang De Neela Initiative, welcomed this move, citing its potential to discourage consumption of sin goods’ and boost government revenue.

Impact of GST increase on consumption

Dr Kovil said, “The government's decision to introduce a 40 percent GST on sugary, carbonated and energy drinks marks a strong public health oriented stance. Globally, ‘sin taxes’ on products that harm population health — such as tobacco, alcohol, and now sugar have shown promise in reducing consumption. India faces an alarming rise in lifestyle diseases like obesity, diabetes, and cardiovascular disease, much of it fueled by excess sugar intake. By making these beverages costlier, the GST Council is sending a clear signal: unhealthy choices will carry a higher price, while healthier alternatives are encouraged.”

He added, “The rise in GST on what are referred to as 'sin products' (tobacco, alcohol, sugary foods, and carbonated beverages) represents a much-needed public health response to the growing burden of lifestyle disease in India. India is at the nexus of a health crisis and faces an increasing burden of diseases driven by both tobacco and alcohol, which are both large contributors to cancers, cardiovascular disease and liver failure, while the over-consumption of sugary foods and beverages is driving overweight, obesity, diabetes, and diabetes-linked metabolic diseases amongst young adults and children.”

Doctors say this 40 percent tax move could nudge people to better their lifestyle choices.

Long-term benefits

Over time, this measure can shift consumer behaviour, reduce sugar dependence, and ease the burden of non-communicable diseases on the healthcare system, as per the health experts. They said it's a prime example of how taxation can be a powerful tool for societal well-being.

Dr Kumbar explained, “Around the world, economic tools such as taxes have been proven to be effective in reducing consumption of unhealthy products. Tobacco taxation, for example, has been shown to cause declines in smoking, and countries that have implemented taxation on sugar have seen decreased sales of soft drinks. The action in India will have a dual effect: the first being to reduce access and affordability to substances that are unhealthy, and the second to send a strong social message that the community at large must and will prioritise health over hedonism.”

Complementary measures needed

The doctors also emphasised the need for complementary measures, such as awareness campaigns, healthy alternatives, and strict advertising controls, to effectively address the issue.

Dr Kumbar said, “Of course, taxes alone cannot be the solution to the issue. This policy should be complemented by aggressive awareness campaigns, healthy, affordable alternatives, and strict control of advertising, especially of children and youth. Fully implemented, an increased GST could save millions of lives, relieve India's health burden, and set the foundation for a healthier, more productive nation. In a sense, this is not merely a fiscal policy—it is an intervention in public health with dividends to the nation down the line.”

He added, “Although the shift will not necessarily make India healthier overnight, it can, over time, shape consumer behaviour. It indicates a policy direction recognising the connection between lifestyle goods and public health. Whether this measure will ultimately be effective will largely rely on its implementation and reinforcement through overall health and education initiatives.”

Dr Kovil said, “Equally important is the broader GST reform that simplifies the tax structure into two primary slabs — 5 percent and 18 percent. Essentials like packaged water and coffee will now be cheaper, ensuring that consumers have affordable, healthier substitutes. For long we have given various names to sugar addiction like sweet tooth or foodie, but its actually the brain that makes the person crave for sugar. This move is just not a tax policy but it is healthcare through pricing and thus nudging India to better our lifestyle choices.”

He added, “Over time, such measures can shift consumer behaviour, reduce sugar dependence, and ease the burden of non-communicable diseases on our healthcare system. This move is a prime example of how taxation can be a powerful tool for societal well-being.”

The new GST rates will come into effect on September 22, 2025.

Note to readers: This article is for informational purposes only and not a substitute for professional medical advice. Always seek the advice of your doctor with any questions about a medical condition.