Drug makers want lower GST on nicotine gums, say 18% impedes health policy

Currently, nicotine polacrilex, raw material used in gums, is taxed at 5%, gums at 10.2%

Drug makers want the government to lower the 18 per cent goods and service tax (GST) rate on nicotine gum as the current rate contradicts its health policy and makes de-addiction more expensive.

As per existing rates nicotine polacrilex (raw material used in gums) is taxed at 5 per cent while gums are taxed at 10.2 per cent. The GST rate on nicotine gums has been fixed at 18 per cent. The increase in rate has upset the industry that has petitioned the government to reconsider its move.

With tobacco taxation being at same level as the pre-GST structure, the