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March 22, 2017 US beverage company Coca-Cola wants the Indian government to reduce the tax on aerated drinks from 43% to 34% and to increase the July 1st deadline for implementation to September. The company argued that since its product was neither a luxury item nor a sin product, it should not be levied with 15% cess above the highest tax bracket of 28%. According to Coca-Cola, the cess should be capped at 6%. Moreover, the company wants the deadline for GST implementation to be pushed forward so that businesses will have more time for the transition.
Coca-Cola and other beverages have been in the spotlight recently with the government pulling them up for adding too much sugar in their drinks (as compared to their drinks sold in Europe). The government is also considering rules to make displaying sugar and fat content on drink and junk foods mandatory, as well as a ‘fat tax’ on unhealthy foods to curb obesity in the country. As reported by Firstpost
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