Former CEA Criticizes 18% GST on Caramelized Popcorn as “Complexity is a Bureaucrat’s Delight”
Date: December 23, 2024
Category: GST Recent News
Read Time: 4 Minutes
The GST Council’s decision to impose 18% GST on caramelized popcorn has sparked widespread criticism, with several prominent figures expressing their disapproval.
Key Criticisms
- Ex-CEA Krishnamurthy Subramanian:
In a tweet, the former Chief Economic Advisor (2018-2021) remarked,
“Complexity is a bureaucrat’s delight and citizens’ nightmare.”
- Former Infosys CFO Mohandas Pai:
Labeled the move as “silly and complex,” claiming it would lead to “tax terrorism.”
Urged simplification of GST, calling the current structure bad policy.
- Former CFO Arvind Subramanian:
Criticized the decision as a “national tragedy,” arguing it violates the essence of a “Good & Simple Tax.”
Warned against increasing complexity and irrational enforcement.
- Security Analyst Sushant Sareen:
Referred to the system as “brainless bureaucracy” and criticized the perceived arbitrariness of classifying popcorn varieties as necessities, comforts, or luxuries.
Highlighted the regressive taxation model, calling it a tax-till-you-kill approach.
GST Rates on Popcorn
5%: Salted popcorn.
12%: Pre-packaged and labeled popcorn.
18%: Caramelized popcorn.
Finance Ministry’s Clarification
The Ministry clarified that this decision was not a new tax imposition but a clarification to address disputes over varying field-level interpretations.
Pending Decisions
- Insurance Taxation:
The GoM on insurance, led by Bihar Deputy CM Samrat Chaudhary, postponed a decision on reducing taxes for group, individual, and senior citizen insurance policies. Another meeting is scheduled for further deliberations.
- Rate Rationalization Report:
A report proposing tweaks to 148 items was not presented during this meeting.
Chaudhary confirmed that it will be tabled at the next GST Council meeting.
This controversy highlights growing concerns about the increasing complexity of GST rates and their implications for businesses and consumers alike.
