No Candy is Dandy

Legislators in the US state of Minnesota are slugging it out over the so-called Cheeseburger Bill that aims to prevent consumers from suing food companies for obesity and health problems caused by fatty food and sugary drinks by implying that such ailments were the consequence of choice, not coercion. Finance minister Pranab Mukherjee, however, has taken at least a tiny pre-emptive step in the right direction for India . Just in time too, as lifestyle malaises like diabetes and fatty liver disease are rising alarmingly in the country. It could be hazarded that the government may have evidence to indicate that persistently-high food inflation had put people off wholesome fresh groceries and the pleasures of frugal home cooking and got them to make a beeline for mood-boosting sugar and liquor fixes instead.

In that context, the timely raising of excise duty on sugary confectioneries from 4% to 5% — thus blocking off the surreptitious pushing of 50-paise sweets as alternative change in stores nationwide — and imposing service tax on air-conditioned restaurants serving libations, makes it clear that the government is concerned about the well-being of the middle class. Furthermore, the proposal for a 1% excise duty on sauces, ketchups, soups, instant food mixes and tea and coffee pre-mixes also indicates a well-intentioned move to promote more the revival of traditional forms of nourishment. Since ill-health is also sought to be broadly disincentivised by upping the cost of diagnostic services — especially in air-conditioned hospitals — by including them in the service tax net, and also by giving a carrot for longevity in the form of generous income tax concessions for those crossing the age of 80, the message to the middle class is clear: pay more now or stay healthy and pay less later.