Separate rate for caramelised popcorn draws criticism from economists

"This is a national tragedy, violating the spirit of the Good & Simple Tax the GST was meant to be," says former chief economic adviser Arvind Subramanian

Economists have criticised the decision of the Goods and Services Tax (GST) Council to have an 18 per cent GST for caramelised popcorn, saying it will further complicate the indirect tax system.

 

After the Council meeting in Jaisalmer, the finance ministry in a statement said ready-to-eat popcorn, mixed with salt and spices, attracted a 5 per cent rate and 12 per cent if supplied as pre-packaged and labelled.

 

“However, when popcorn is mixed with sugar thereby changing its character to sugar confectionery (e.g. caramel popcorn), it would attract 18 per cent GST. It has been decided to regularise the issues