The Indian subsidiary of Coca-Cola has warned of shutting down factories as the Indian government proposed a 40% ‘ sin tax ‘ on fizzy drinks and tobacco products considered harmful to the society. As per the new Goods and Services Tax (GST) proposed, fizzy drinks are being grouped with tobacco and tobacco products and therefore will attract a 40% ‘sin tax’ as compared to 18% charged now.Over the years, several countries have proposed “sugar taxes” to discourage consumption of aerated soft drinks in order to tackle obesity and encourage healthier lifestyles. There have been demands from various groups for addition of health warnings to sugary drinks in an attempt to make them as socially unacceptable as cigarettes.