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‘India will always be third-world country if...’: Sushant Sareen slams 18% tax on caramel popcorn
- The controversy arose after the GST Council clarified that ready-to-eat salted popcorn would attract 5% GST, while caramelised popcorn would be taxed at 18% due to added sugar.
The government’s decision to clarify the Goods and Services Tax (GST) rates on caramel popcorn has sparked widespread criticism, with security analyst Sushant Sareen and others accusing policymakers of imposing unnecessary complexities.
FM's rationale
The controversy arose after the GST Council clarified that ready-to-eat salted popcorn would attract 5% GST, while caramelized popcorn would be taxed at 18% due to the addition of sugar.
Finance Minister Nirmala Sitharaman explained that products with added sugar are categorized differently for taxation, saying, "When you talk outside, it looks silly...but states say that we treat products with added sugar differently be it drinks or juice."
Sareen, however, was not convinced. Criticizing the move, he said, "India will always be a third-world country if we have a brainless bureaucracy and clueless politicians who penalize anything that remotely resembles upgrading products." He added, "Apparently for these socialist geniuses, unpackaged popcorn is a necessity, packaged ones are comfort food, and caramelized are luxury."
Sareen further questioned the efficacy of the GST system, calling it "neither good nor simple" and accusing policymakers of prioritising socialist pretensions over common-sense economics. "It is tax till you kill the golden goose model," he remarked.
Alok Jain, founder of WeekendInvesting, echoed similar sentiments, calling the taxation distinction "mindless" and "unnecessary regulations." He criticised policymakers for their "backward attitude" and argued that such decisions undermine the ease of doing business.
In its defense, the Finance Ministry stated that no new tax was being imposed. The clarification was issued to resolve disputes arising from varying interpretations of GST rates on different types of popcorn. "It is a clarification being recommended by the GST Council to settle disputes," the ministry said in its statement.
Despite the explanation, critics maintain that the decision reflects the broader challenges of implementing a simplified tax system in India, which continues to face criticism for its complexities and lack of consistency.
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Business NewsEconomy‘India will always be third-world country if...’: Sushant Sareen slams 18% tax on caramel popcorn
First Published:23 Dec 2024, 08:09 AM IST
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