In its Budget, the CPM-led LDF government proposed a slew of new taxes, including a 'fat tax' of 14.5 per cent on burgers, pizzas and pastas served in branded restaurants.
CII urged the state government to review the levy of this tax.
The move "would adversely affect growth of the quick service restaurant segment of the food industry and might set a similar trend for other segments as well," Piruz Khambatta, Co-Chairman, CII National Committee on Food Processing Industries, said in a statement.