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Biscuit manufacturers call for lower GST rate, cite mass comsumption

The GST Council kept biscuits at 18 per cent tax slab under the Goods and Services Tax, which was rolled out from July 1 last year

Press Trust of India  |  New Delhi 

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manufacturers today demanded a lower rate on and related products than the current 18 per cent, saying it is a and are subject to lower rate.

Stating that about 15 per cent sales have gone down post implementation, (IBMA) said consumers of belong predominantly to the poorer segment and will hurt the 2.5 crore employment created by the industry.

The association called for bringing down rate on biscuits between 5 per cent and 12 per cent saying it is not a premium product and higher will lead to stagnation in growth of the industry.

"This is a labour oriented industry and mostly local workers get employment. Besides, other such as processed dry fruits, sweets, tea and juice have been kept at a 5 per cent bracket," IBMA B P told reporters here.

The kept biscuits at 18 per cent slab under the Goods and Services Tax, which was rolled out from July 1 last year.

said the association has written to all the and also to the to place biscuits between 5-12 per cent slab.

"Close to 2.5 crore direct and indirect employment is created by this industry which include small workers, distributors and transporters," he added.

When asked if the government denies lowering the tax on biscuits, said the cost will automatically go up and will be passed to consumers.

"If today we sell 50 gm packet at Rs 5, we will sell only 30 gm or less than that," he added.

GST has subsumed all major levies including excise, service tax and VAT, unifying 16 different taxes, and make a single market.

First Published: Tue, January 16 2018. 22:28 IST