Coca-Cola India warns of factory closures if 'sin tax' is implemented

The Indian subsidiary of Coca-Cola Co said yesterday it may have to close some bottling plants if the government pushes through a proposal that would subject fizzy drinks to a 40% ‘sin tax’.

The government’s proposal is part of a broader fiscal overhaul. The beverage maker operates 57 factories and bottling plants across India.

It said a proposal to group sugary sodas with higher-taxed luxury cars and tobacco would hurt demand for its drinks.