New GST Rates on Popcorn Spark Backlash on Social Media

The Indian government's decision to levy different tax rates on popcorn based on whether it contains sugar or salt has sparked widespread criticism on social media. Two former government economic advisers have joined the chorus, criticizing the taxation framework established in 2017.

The GST Council, led by Finance Minister Nirmala Sitharaman, announced on Saturday that non-branded popcorn with salt and spices would be taxed at 5%, pre-packaged and branded varieties at 12%, and caramel popcorn, classified under sugar confectionery, at 18%. The new rates were implemented immediately, resolving previous inconsistencies in state-wise taxation of popcorn.

However, opposition politicians, economists, and government supporters have expressed their disapproval of the decision, with some responding with humor and satire. "Complexity is a bureaucrat's delight and citizens' nightmare," said former Chief Economic Adviser K V Subramanian, questioning the decision's value given its minimal revenue impact and public inconvenience. His predecessor, Arvind Subramanian, also criticized the move for increasing complexity rather than simplifying the system, mentioning issues with enforcement and rationality.

Congress party leader and spokesman Jairam Ramesh criticized the "absurdity of three different tax slabs for popcorn under GST," saying it exemplifies the increasing complexity of what was intended to be a straightforward tax system.