Nirmala Sitharaman announced 18% GST on popcorn: A new controversy has started on popcorn
In India, the GST Council decided to impose different tax rates on popcorn, which led to controversy. There is a round of memes and criticism on social media. Experts and the opposition called it a move that would increase the complexity of the GST system.
INDC Network : Business : Nirmala Sitharaman said 18% GST on Popcorn : A new controversy has started on Popcorn
The Popcorn Tax Controversy: Confounding Experts and the Public
Popcorn, a staple of movie nights, parties, and light entertainment, is now at the center of a tax controversy. This decision of the GST Council has confused not only the public but also the experts.
Division of Tax Rates:
The following rates have been imposed on popcorn by the GST Council:
| Department | Tax rate | Due to tax |
|---|---|---|
| Plain Popcorn (Salted) | 5% | On plain spices and unbranded packaging |
| Packed and labeled popcorn | 12% | Because of branding and being pre-packaged |
| Caramelized popcorn | 18% | It is classified as a dessert due to its sugar content |
Finance Minister's Argument
Finance Minister Nirmala Sitharaman said that products with added sugar are taxed separately. Caramelized popcorn is also placed in this category.
Criticism and social media feedback
Expert opinion
- KV Subramanian (Former Chief Economic Adviser): "Complexity is a problem for citizens, while it will have negligible impact on revenue."
- Arvind Subramanian (Former Chief Economic Adviser): "This step will add complexity and difficulty in compliance."
Reaction of opposition
- Congress spokesperson Jairam Ramesh said, "The three separate tax slabs expose the complexity of the GST system."
Social media memes
- "Even tax officials will be confused to understand the math of the tax rate on a packet of salted caramel popcorn."
tradition of disputes
The GST system has been mired in controversy over classification before.
- Chapati vs Paratha
- Separate rates on curd and yogurt
- Cream bun vs. cream and bun served separately
BJP's response
BJP economic affairs spokesperson Gopal Krishna Aggarwal defended the decision saying that "GST Council took this decision in response to a specific question."
What does it mean for people?
GST was intended to be a "good and simple tax", but recent decisions have raised questions about its complexity.
What's Your Reaction?
