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India’s GST on Popcorn Sparks Outrage

The GST Council announced new tax rates for popcorn.

India’s new rule to tax popcorn based on its sugar or spice content has faced criticism from the opposition and sparked outrage on social media.

The GST Council announced new tax rates for popcorn, with non-branded popcorn mixed with salt and spices taxed at 5%, pre-packaged and branded popcorn at 12%, and caramel popcorn, considered a sugar confectionery, at 18%.

The decision aimed to end confusion over popcorn tax rates across states, but it sparked criticism and outrage on social media, with many questioning the logic behind differentiating popcorn based on ingredients.

Former Chief Economic Adviser K V Subramanian criticised the move, calling it a complex decision that would inconvenience citizens and contribute little to tax revenue.

Arvind Subramanian, his predecessor, added that the move added unnecessary complexity, making the system harder to enforce and more irrational.

Opposition leader Jairam Ramesh described the three tax slabs for popcorn as absurd and highlighted how they expose a deeper issue with the growing complexity of the GST system.

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