Coca-cola CEO-designate might meet the PM to discuss Sugar Tax

James Quincey, the global CEO-designate of Coca-Cola, during his India visit is likely to meet PM Narendra Modi and discuss sugar tax on carbonated beverages that the government is expected to announce soon, in a bid to promote healthy lifestyle.

"Quincey will discuss the implications of a likely sugar tax with the PM, with the Goods and Service Tax (GST) expected to roll out soon," said an official in the know.

The meeting has been proposed by the company, but is yet to be confirmed by the administration.

Quincey, who will be visiting India soon, will take charge of the company from May 1 after the exit of present CEO Muhtar Kent.

Also read: Governments around the world are taxing soda - and it's forcing Coke and Pepsi to make major changes

Coca-cola, world’s largest beverage firm, is pushing for a post-GST taxation policy in India, which would allow fair treatment of all companies according to the content of the product.

The management in India, coke’s sixth biggest market globally, wants the government to retain the average tax rate of 34% that is charged on aerated drinks after the GST is introduced. On the other hand, the GST Council has said that this category would attract a cess of 15% on top of a peak rate of 28%, making the total tax rate on carbonated drinks at 43%.

Also read: Coke and Pepsi are finally ditching sugar

"We hope and expect that all products that contain sugar will be taxed according to their content across categories, and that beverages are not singled out. We are hopeful GST will be levied on the basis of sugar content, not on the basis of carbonation," Venkatesh Kini, President of Coca-Cola India, told ET.

Also read: “Coca-Cola has lowest attrition amongst peers!” India chief shuns rumours of major exit

In the Indian market, owing to the growing concerns about the adverse effects of aerated drinks, Coca-Cola has launched Fuze iced tea, dairy brand Vio, fortified enhanced water brand Aquarius and coconut water Zico.

(Image source: The Coca-Cola Company)