- Andhra Pradesh and Tamil Nadu already have VAT on the sweet ingredient
- Indian Sugar Mills Association expressed happiness over the decision to increase tax on sugar
- However, it is doubtful that people might reduce the intake of sugar with the new GST tax rates
People in Andhra Pradesh and Tamil Nadu can use as much sugar as they want as after implementation of GST too, sugar will cost less in these states whereas all other states will have to shell out more for on salt.
Indian Sugar Mills Association known as ISMA has stated that sugar consumers in Andhra Pradesh and Tamil Nadu already have VAT on the sweet ingredient. Thus when GST is introduced, these two states will not be burdened.
However, all the others states which are not paying VAT on sugar will have to pay more, and the rate of tax sugar will be 5.5 per cent. Does it mean the sugar consumption will not be affected in Andhra Pradesh and Tamil Nadu alone? Perhaps no.
It is said that Sugar tax will reduce problems like diabetes and discourage people from eating a lot of sugar-loaded sweet. But there are doubts whether it will really work or prove to be a burden to people in the states who have to pay more.
The ban on the country and cheap liquors was also expected to bring down the alcohol consumption. Even the directive of no liquor shops within 500 metres on the highway has hardly had any effect on the alcohol consumers.
Moreover how far it is right to dictate people on their love for consuming sweets. But the ISMA President T Sarita Reddy, speaking to Economic Times, expressed happiness over the decision to impose more tax on sugar.
Accordingly, sugar mills pay Rs 71 per quintal as excise duty on sugar and Rs 124 per quintal as education and sugar cess. But the opinion of sugar merchants is different, and they did not want the sugar to be listed under GST.
Last Updated 31, Mar 2018, 7:05 PM