Finance Minister Nirmala Sitharaman will present the Union Budget on July 23, having already presented an Interim Budget ahead of the Lok Sabha elections.
Finance Minister Nirmala Sitharaman presented the interim Budget on February 1, 2024. Ahead of the Union Budget 2024 presentation, news emerged that Prime Minister Narendra Modi may face troubles this time, to accommodate the wishes of his alliance partners JD(U) chief Nitish Kumar and TDP supremo Chandrababu Naidu. However, it is more likely that the Budget will be a feel-good one, coming on the back of the Rs 2.11 lakh crore record dividend to the union government from the RBI.
"On the ongoing GST framework, companies committed to crafting wholesome beverages confront substantial challenges. The disparity in tax rates, where fruit-based drinks attract a modest 12 per cent GST despite potential misuse of this classification by sugary or concentrated variants, while carbonated drinks face a hefty 40 per cent tax (28 per cent GST and 12 per cent Cess) irrespective of their health profile, strains margins. This discourages the pursuit of innovative, genuinely healthy beverage options and inadvertently promotes the proliferation of fruit-based or sugar-laden alternatives, said Jyoti Bharadwaj, Founder of TeaFit.
"Unlike progressive tax systems in nations such as Singapore and the UK, which levy taxes based on sugar content to foster healthier food choices, our rigid tax structure impedes the introduction of healthier carbonated alternatives by imposing uniform taxes. A reform that prioritises nutritional value over broad categorisations within the GST system is imperative. Such a reform would empower companies to advance their mission of promoting public health through innovative, low-sugar beverages. By aligning tax incentives with consumer preferences and global health trends, this approach not only supports industry innovation but also facilitates a market shift towards genuinely health-conscious products," she added.
Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.
Published 21 July 2024, 09:58 IST