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Table 4 Required incremental tax for a 10% consumption reduction in ASBs

From: Price elasticity and affordability of aerated or sugar-sweetened beverages in India: implications for taxation

  Baseline Tax pass-through scenario
50% 75% 100%
Average retail price (INR/liter) 60 67.1 67.1 67.1
Tax component in retail price (INR/liter) 17.2 31.3 26.6 24.2
Consumption volume (million liter) 5568 5011 5011 5011
Estimated GST revenue (INR million) 95,547 156,707 133,135 121,350
Tax burden (Tax as % of the retail price) 28.6% 47% 40% 36%
Changes (in percentage)
Consumption −10% −10% −10%
 Tax Revenue 64% 39% 27%
 Prices 12% 12% 12%
 The required increase in tax (%) 82% 55% 41%
Absolute tax increase (INR/liter) 14 9 7
Required compensation cess rate 59% 38% 29%