India Cuts GST on Coffee to 5% in Landmark Tax Overhaul

New Delhi, September 4, 2025 (Qahwa World) – The Indian government has announced a sweeping reform of its Goods and Services Tax (GST), slashing rates on coffee and other food products from 12%–18% down to just 5%. The decision, taken during the 56th GST Council meeting chaired by Finance Minister Nirmala Sitharaman, marks one of the most significant tax changes since the GST system was introduced in 2017.

The reform simplifies India’s indirect tax structure into two main slabs—5% for essential and merit goods, and 18% as the standard rate—alongside a new 40% rate for de-merit goods such as tobacco and luxury items. The reduced rates, including the cut on coffee, will take effect from September 22, 2025, coinciding with the Navratri festival.

Coffee Industry Among Key Beneficiaries

Coffee has been placed in the merit category, meaning products that previously attracted 12% or 18% GST—such as roasted beans, instant coffee, and other processed coffee items—will now be taxed at only 5%.

Industry experts expect this move to have a ripple effect across the entire coffee value chain:

  • Growers and processors are likely to benefit from stronger domestic demand, as lower retail prices could encourage greater consumption.

  • Retailers and cafés may see a boost in sales volumes, with increased affordability improving consumer access to both mainstream and specialty coffee.

  • Consumers will directly benefit from reduced prices, especially as food and beverage costs have risen sharply in recent years.

A Broader Economic Push

The decision is part of a wider strategy aimed at easing the cost of living, stimulating consumption, and simplifying India’s tax regime. Alongside coffee, the rate cut covers other everyday items including chocolates, butter, ghee, sauces, noodles, and packaged snacks.

“This rationalisation is designed to make GST simpler, more transparent, and more consumer-friendly,” Finance Minister Sitharaman said after the council meeting, stressing that the two-slab system will also reduce compliance burdens for businesses.

Looking Ahead

India—already one of the world’s largest producers of Arabica and Robusta—is expected to see a surge in domestic coffee consumption following the tax cut. Analysts suggest the move could help narrow the cultural gap between tea and coffee, while further boosting India’s vibrant café culture and specialty coffee sector.

The GST overhaul signals a structural shift in India’s economic policy, and for coffee, it may represent the beginning of a new chapter where affordability fuels greater appreciation of the drink across the country.

3 to 5 Cups of Coffee Daily Extend Life and Reduce Disease Risk

Dubai, 27 August 2025 (Qahwa World) – For centuries, coffee has been more than a drink. It has been a ritual, a social bond, a fuel for intellectual debate, and a daily companion for billions. Now, science is reaffirming that this centuries-old beverage is not only cultural but also profoundly tied to human health. A comprehensive review published this month in Nutrients concludes that moderate coffee consumption, typically three to five cups a day, is consistently linked to longer life and a reduced risk of many of the world’s leading causes of death.

The study, authored by Ryan Emadi and Dr. Farin Kamangar, examined decades of large-scale cohort research involving millions of participants across the United States, Europe, and Asia. Their findings show that people who regularly drink coffee enjoy between 10% and 15% lower overall mortality than non-drinkers. Importantly, both caffeinated and decaffeinated coffee were associated with these benefits, suggesting that the protective effects come not only from caffeine but also from the dozens of bioactive compounds present in coffee.

Evidence is particularly strong when it comes to major chronic diseases. For cardiovascular health, those who consumed three to five cups daily experienced about a 15% reduced risk of heart disease and stroke. Type 2 diabetes, a condition that affects hundreds of millions worldwide, also appears to be strongly influenced by coffee habits. A meta-analysis of more than one million participants found that coffee drinkers had nearly a 30% lower risk of developing type 2 diabetes, and this protection extended to both decaf and regular coffee. Among people already living with diabetes, coffee consumption was linked to fewer cardiovascular events and lower mortality rates.

The benefits extend to neurological health as well. Drinking coffee was associated with up to a 25% lower risk of cognitive disorders such as dementia and Alzheimer’s disease. The protective effect also applied to Parkinson’s disease, where coffee and caffeine intake not only lowered the risk of developing the disease but also slowed its progression among those already diagnosed. Respiratory diseases, another major global killer, also showed an inverse relationship with coffee consumption, while studies reported reduced risks of liver fibrosis, chronic kidney disease, and acute kidney injury among habitual drinkers.

Cancer, once the focus of skepticism about coffee, has now largely been cleared from suspicion. Earlier fears that coffee might contribute to cancer risk have been replaced by evidence suggesting the opposite. Coffee is now associated with reduced risk of several cancers, particularly of the liver, uterus, and endometrium. A pooled analysis of nineteen studies found that women who drank coffee had a 13% lower risk of endometrial cancer, and the relationship was dose-dependent—the more coffee, the lower the risk.

Beyond chronic disease, coffee also appears to play a role in everyday well-being and safety. Studies cited in the review showed that drivers consuming caffeinated coffee were significantly less likely to crash, and older adults had a reduced risk of falls. Researchers attribute this to coffee’s ability to improve alertness, attention, and mobility.

The mechanisms behind these benefits are diverse and interconnected. Coffee has been shown to improve glucose tolerance, enhance daily physical activity, increase fat oxidation during exercise, boost lung function, and reduce inflammation. One trial found that people who drank caffeinated coffee walked an average of 1,000 more steps per day than on days they abstained. Other studies demonstrated that coffee drinkers had lower levels of inflammatory markers, suggesting that coffee helps the body manage the underlying inflammation that fuels many chronic diseases.

Yet not all coffee is created equal. The review stressed that black coffee offers the strongest protection. Adding sugar, in particular, can cancel out or diminish benefits. Some studies have linked sugar-sweetened coffee to higher risks of depression and weight gain, while unsweetened coffee showed the opposite effect. Cream and milk appear less harmful, but excessive amounts of sugar and high-fat additives weaken coffee’s health profile.

There are also caveats. Pregnant women are advised to limit caffeine to below 200 milligrams per day, as higher intake may pose risks. Coffee can interfere with sleep if consumed too late in the day, cutting total sleep time by around 30 to 45 minutes. Excessive consumption may trigger anxiety, palpitations, or panic attacks in sensitive individuals. Despite these concerns, the authors emphasized that for the vast majority of adults, moderate consumption is not only safe but beneficial.

Dr. Farin Kamangar summarized the findings: “The results of several decades of high-quality research on millions of people show that coffee is overall beneficial to health. Moderate coffee consumption, typically three to five cups a day, is linked to increased longevity and reduced risks of many major diseases, including heart disease, stroke, type 2 diabetes, respiratory illnesses, and cognitive decline.”

This new consensus has already begun to reshape official guidelines. The U.S. Food and Drug Administration recently ruled that plain coffee with fewer than five calories per serving can be labeled as “healthy,” reflecting its favorable profile across multiple health outcomes.

In the end, coffee is not a cure-all, but the evidence is clear: consumed in moderation, it is far more friend than foe. For billions who reach for a cup each morning, the comfort of coffee now comes with scientific reassurance that it may also be extending their lives.

Coffee Boom: Saudis Consume 36 Million Cups Daily

Dubai, August 21, 2025 (Qahwa World) – Saudi Arabia’s coffee market is witnessing unprecedented growth, positioning the Kingdom among the world’s top consumers of caffeine. According to the Saudi Restaurants and Cafés Association, Saudis consume around 36 million cups of coffee every day, roughly equivalent to one cup per person. The local market is valued at between $1.3 and $1.9 billion annually, reflecting strong demand and a broad consumer base. Projections also suggest that the coffee market across the Middle East and North Africa could reach $11.7 billion by 2027, with Saudi Arabia making a major contribution thanks to the rising popularity of specialty coffee.

The Ministry of Commerce has issued more than 61,000 café licenses across the country, including 27,000 licenses for traditional neighborhood cafés that serve Arabic coffee and heritage products. This surge underscores how cafés have evolved into vibrant social and economic hubs that now compete with restaurants in both customer traffic and revenue. International chains such as Starbucks and Tim Hortons sit alongside fast-rising Saudi brands like Eksiir Al Bun (Elixir Bunn), Khutwat Jaml (Camel Step), and Barn’s, offering innovative experiences inspired by local culture. Technology has also played a vital role in transforming the café landscape, with online ordering apps, digital payment systems, and even the use of robot baristas in advanced outlets.

According to Ahmed Al-Qashqari, CEO of the Saudi Restaurants and Cafés Association, cafés now account for 16% of the Kingdom’s food service sector, compared to a time when restaurants dominated. He noted that the sector is expanding at an annual growth rate of more than 5%, driving job creation and diversifying income streams in line with Vision 2030, which seeks to establish a sustainable, diversified economy. Beyond their economic role, cafés have also become important community spaces, providing ideal environments for networking, creativity, and entrepreneurship, particularly among young Saudis who make up the majority of the population and lead many successful ventures in this sector.

Saudi Arabia has also invested around $320 million to boost domestic coffee cultivation, particularly in the regions of Jazan, Al-Baha, and Asir, which produce the premium Khoulani Arabica beans renowned for their global quality. This investment is designed to significantly increase production and transform Saudi coffee from a cultural tradition into a competitive economic product with strong export potential. The initiative also strengthens the Kingdom’s standing in the global coffee industry. Meanwhile, events such as the Saudi Coffee Festival continue to promote local products and enhance cultural tourism, further solidifying coffee’s strategic role in the national economy.

Despite this remarkable growth, the sector faces challenges, including high operating costs, fierce competition among brands, and the need to continuously train baristas and staff to ensure a world-class experience. Reliance on imports for certain coffee varieties also remains an obstacle to full self-sufficiency. Nevertheless, ongoing investments in local production, combined with technological innovation and consumer-focused strategies, point toward a bright future for Saudi Arabia’s coffee industry, which is fast becoming one of the most dynamic economic and cultural drivers in the region.