NEW DELHI: Centre’s decision to levy different tax rates on popcorn based on whether it contains sugar or salt has faced extensive backlash on social media, with two former government economic advisers criticising the taxation framework established in 2017.
The GST Council, led by the finance minister Nirmala Sitharaman, issued a order on Saturday announcing 5% GST for non-branded popcorn with salt and spices, 12% for pre-packaged and branded varieties, and 18% for caramel popcorn, classified under sugar confectionery.
The new rates were implemented immediately, resolving previous inconsistencies in state-wise taxation of popcorn.
Meanwhile, the Union finance minister defended the 18% tax on caramel popcorn, stating that items containing added sugar attracts different taxation.
However, opposition politicians, economists and government supporters expressed their disapproval to the government’s decision, while others responded with humour and satire.
“Complexity is a bureaucrat’s delight and citizens’ nightmare,” said former Chief Economic Adviser K V Subramanian on X, questioning the decision’s value given its minimal revenue impact and public inconvenience.
Additionally, his predecessor Arvind Subramanian, criticised the move for increasing complexity rather than simplifying the system, mentioning issues with enforcement and rationality.
Meanwhile, Congress party leader and spokesman Jairam Ramesh criticised the “absurdity of three different tax slabs for popcorn under GST”, saying how it exemplifies the increasing complexity of what was intended to be a straightforward tax system.
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