The Fruit Juice Council — a body representing the formal juice industry – has demanded the government to reduce the FED rate on the juice industry to 15%.
The current 20% FED (on top of existing 18% GST) has stalled the juice industry’s growth and in FY2024-25 the government’s revenue projections fell short of its own expectations.
This indicates that the juice industry has hit the Laffer Curve (where the taxation is so high that it results in sharp decline of sales, ultimately affecting government revenue).
In line with local regulations, fruit drinks have minimum 5% fruit content, nectars have 25%- 50% fruit content and pure juices have 100% fruit content.
