Love your energy drinks? Beware! This is set to happen
Caffeine-linked energy drinks in India such as Red Bull, Monster energy drink might see an increase in their selling price as the Government is planning to escalate its tax bracket and raise up its tax percentage by 10% and that is from 18% to 28%.
As per the department of finance, caffeine-linked energy drinks in India such as Red Bull, Monster energy drink might see an increase in their selling price as the Government is planning to escalate its tax bracket and raise up its tax percentage by 10% and that is from 18% to 28%. In addition to the new tax percentage there is a possibility of an additional 12% cess along with the goods and service tax (GST), and if clubbed together the total tax payable on the energy drinks will be somewhat around 40% which is going to shoot the price skyhigh and well beyond the reach of the general masses, according to Dainik Bhaskar newspaper.
An official said that these non-alcoholic drinks are infused and made with ingredients which are harmful and injurious to younger generation's health. As per the authorities, this is the key and the most dominant reason to alter the energy drink's tax bracket. The World Health Organisation (WHO) had also warned about the same and declared these apparent health drinks "danger to public health."
The motion to levy an increased tax on this product can be brought up in the next GST meeting along with other predominant subjects regarding the policies. It is estimated that this move will fetch the government an extra revenue of approximately Rs. 150 crores.
As per the statista.com reports, the energy drink market share will increase multi-fold by 2020. It gives an insight into the retail share of energy drink's segment and says that in 2015 it amounted to Rs 15 billion while in 2020 it is estimated that the market share would be approximately Rs 50 billion.
The Government has also made provisions to levy higher taxes on luxury cars and cancer-causing products like cigarette and tobacco.