Context: Recent studies by NITI Aayog show that the levy of 20-30% health tax on food high in sugar, salt, and fat. The study by Niti Aayog, studied the impact of imposing health taxes and warning labels on food products to encourage healthy eating practices.

About NITI Aayog:

• Establishment: Formed in 2015.
• Headquarters: Located in New Delhi.

Objectives:

1. Develop a shared vision of national development priorities, sectors, and strategies involving active State participation.
2. Promote cooperative federalism through structured support initiatives and mechanisms with the States on an ongoing basis.
3. Create mechanisms for formulating credible plans at the village level and aggregating them progressively at higher government levels.
4. Ensure the incorporation of national security interests in economic strategy and policy, particularly in specified areas.
5. Focus on technology upgradation and capacity building for effective program implementation.
6. Actively monitor and evaluate the implementation of programs and initiatives.

Salient Features:

• Established through a Union Cabinet resolution on January 1, 2015.
• Replaced the Planning Commission, a non-constitutional body formed in 1950.
• Equipped as a state-of-the-art Resource center with necessary knowledge and skills.
• Aims to act swiftly, promote research and innovation, provide strategic policy vision, and handle contingent issues.
• Supported by attached offices, including Development Monitoring and Evaluation Organisation (DMEO), Atal Innovation Mission (AIM), and an autonomous body, the National Institute of Labour Economics Research and Development (NILERD).

Structure:

• The Governing Council is the primary body responsible for developing a shared vision of national priorities and strategies.
• The Governing Council includes Chief Ministers of all States, Union Territories with legislatures, and Lt Governors of other Union Territories.

Functions and Activities:

NITI Aayog's activities encompass four main areas:

1. Policy and Programme Framework
2. Cooperative Federalism
3. Monitoring and Evaluation
4. Think Tank, Knowledge, and Innovation Hub

Taxation on High Fat Sugar Salt (HFSS) Foods:

Definition of HFSS Foods:

As per the Ministry of Women and Child Development, High Fat Sugar Salt (HFSS) foods encompass any packaged or non-packaged food or drink. These items are characterized by low levels of proteins, vitamins, phytochemicals, minerals, and dietary fiber, while being high in fat (saturated fatty acids), salt, sugar, and overall energy (calories). Regular or excessive consumption of these foods is known to have adverse effects on health.

Recommendations by WHO and ICRIER:

The World Health Organization (WHO) and the Indian Council for Research on International Economic Relations (ICRIER) advocate that the Food Safety and Standards Authority of India (FSSAI) should clearly delineate High Fat Sugar Salt foods, ensuring transparency. They propose the adoption of a nutrient-based tax model.

Reasons for Taxation on HFSS Foods:

1. Health Risks: These foods pose significant health risks.
2. Economic Burden of Obesity: The economic burden of obesity in India was $23 billion in 2017.
3. Increasing Consumption: There is a rising trend in the consumption of such foods in India.

Benefits of Taxing HFSS Foods:

1. Promotion of Healthier Choices: Taxation encourages the selection of healthier food options.
2. Improved Public Health Outcomes: It contributes to better public health outcomes.
3. Reduction of Healthcare Burden: By discouraging the consumption of HFSS foods, the burden on the healthcare system is reduced.