AIB urges for a Sugar Based Taxation System.

They said 40% tax on all aerated drinks, even low/no sugar and fruit based drink is unfair.

"Sugar based" tax is used in UK, Mexico, and South Africa.

IBA has requested the Finance Ministry to adopt this model in India.

The system taxes beverages according to sugar density.

High sugar products attract higher rates, while reduced sugar drinks get relief.

The aim is to lower sugar consumption and drive product reformulation.

Current flat taxes do not encourage innovation in healthier formulations.

With sugar based tax, companies can scale low sugar portfolios.

This policy can support India's fight against diabetes and obesity.

South Africa and UK have reported reformulation and reduced sugar intake since 2018.

Industry experts view this as a shift toward scientific and nutrition linked policy.

The GST Council will review tax slabs for consumer goods in early September.