GST on all retail items will lead to increase in the prices of essential food products: Chamber

Tamil Nadu Chamber of Commerce and Industry said the GST Council at its 47th meeting had approved the levy of GST on all retail items, including packaged foods and labelled food products. This would lead to increase in the prices of essential food products.

Tamil Nadu Chamber President N. Jegatheesan said that the public were already affected by the increase in the prices of petrol and diesel. The prices of the essential food products like rice, dal, wheat, flour varieties, jaggery, curd, paneer, honey and bread would also get increased.

The chamber condemned the GST hike on grinders and motor pumps. Grinders are widely used by the public and are mostly manufactured by small and medium enterprises. The increase in the GST from 5 % to 18 % would weaken the sector and affect MSME units.

The GST on motor pumps widely used in agriculture was increased from 12 % to 18 %. Also on items like LED bulbs, knife, pen, ink, blade, etc., GST was increased from 12 % to 18 %, the GST on maps, world maps, wall maps, world pellets, used by school and college students has increased from 5 % to 12 %. With the tax hike, the prices of all goods would increase further and greatly affect the public, he said.

It is very painful that the GST tax has been increased on essential food items used by the common man on a daily basis. The chamber urged Tamil Nadu Finance Minister Palanivel Thiaga Rajan to take up the issue in the GST council meeting to be held in Madurai. The chamber also urged the State government not to accept the GST hike on the essential food products as it would affect the public.

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Printable version | Aug 12, 2022 2:35:57 pm |