Tax rates on biscuits should be revised from 18 per cent to 12 per cent: IBMA

Empowering MSMEs with News & Insights

Home > Sectors

Tax rates on biscuits should be revised from 18 per cent to 12 per cent: IBMA

Updated: Jan 17, 2018 09:59:21am

Tax rates on biscuits should be revised from 18 per cent to 12 per cent: IBMA

New Delhi, Jan 17 (KNN) Voicing concerns of the biscuit industry comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs), the Indian Biscuit Manufacturers’ Association (IBMA) has urged the government to consider lowering the tax rate on the item.

The Association said that biscuits is an item of mass consumption, hence the tax rate of 18 per cent is not in the best interest.

“Biscuit manufacturers, especially in the SME sector, are hard hit because of unjustified imposition of Goods & Services Tax (GST) at a very high rate of 18%,” a release from IBMA said.

Also the MSMEs in the sector are badly hit because of the high tax slab and the growth rate since the roll our of GST hasn't been a favourable one, the release further said.

Comparing the item with other products, the association informed that GST on sweets, processed dry fruits, tea, juice, namkeen, jam, noodles, pasta, tomato ketchup is lower as compared to biscuits. (KNN/DA)

COMMENTS

Dr Mrs Sushma Joiya Pandit 17/01/2018 12:22 PM

Biscuits is an item widely being used by poor people in villages and is being consumed on a large scale to satisfy the hunger of rural children. Children in villages has no other option to take it with tea. Imposition of Goods and Service Tax for an item being consumed by poor rural children should by 10% and not 18%. Cakes and Pastries are being used by children of Rich families 18% GST should be charged on such items which the poor could not afford. Hence hon'ble Finance Minister is kindly requested either to abolish tax on Biscuits in Rural areas or charged 10 % GST.

Reply to this comment