Biscuits eaten mostly by poor: IBMA
The Indian Biscuit Manufacturers’ Association has called for a reduction in the GST rate on biscuits to 12% from the current 18%, arguing that biscuits are mass consumption products that are mostly consumed by the poor.
“Biscuit manufacturers, especially in the SME sector, are hard hit because of the unjustified imposition of Goods & Services Tax (GST) at a very high rate of 18%,” the IBMA said in a release. “The growth in the industry has started to stagnate since the imposition of the 18% GST and there is urgent need to bring down GST rate to 12%.”
“Biscuits are a common product of consumption from a rickshaw puller to a low-wage laborer in search of hygiene, energy, nutrition at a low cost,” B.P. Agarwal, president of IBMA said at a press conference.
“Similar food products are subject to lower GST rates, such as sweets, processed dry fruits, tea, juice, namkeen, jam, noodles, pasta, tomato ketchup while GST at 18% is imposed on biscuits,” Mr. Agarwal added.