Social media exploded with humorous comments after the GST Council, led by Finance Minister Nirmala Sitharaman, revealed new tax rates for popcorn. According to the announcement, ready-to-eat popcorn that’s pre-packed with salt and spices will be taxed at 12%, while caramel popcorn will be taxed at 18%.
Financial experts and social media users cherished a chuckle after the GST Council, headed by Nirmala Sitharaman announced new tax rates imported for popcorn. From the announcement, popcorn that is ready to eat and packed with salt and spices is the one that will attract a tax of 12% while promotional caramel popcorn attract an 18% tax.
The Finance Minister stated that caramelized popcorn falls under the 18% tax bracket, the same as sugar confectioneries because of the sugar added to the popcorns.
This decision was made very quickly, and in return received a number of playful reactions on the Internet. Many users asked the reason as to why the same product should attract different taxes. One user sarcastically asked, “What’s next”? All in all, ‘drinking water with GST Integrated —5%, if you Sip, 12% if you Gulp and 18% if you Spill.’
Haters questioned inequality of tax rates where one said ‘those who advocate for ‘One Nation, One Election’ cannot even fashion one tax rate for popcorn’.
Another aspect include voices that he had regarding the GST rates on goods found in the market. Some of the comments included; “You are taxing popcorn, which is a luxury item whereas the old cars which are bought by the less privileged are also being taxed at 18%.”
The GST Council also hiked the tax on second-hand vehicles from 12% to the 18% while imposing the popcorn tax. Some users expressed amusement at the council pinning its hopes on popcorn, some suggested that cutting GST on health and life insurance premiums should be done instead. One of the users observed, “It appears that the government enjoys making popcorn costly, rather than attempting to make insurance cheaper.”
The popcorn tax also prompted a few jokes: “Have you got salt in your popcorn,” reads one comment while another writes, ‘Now we know what ‘real’ popcorn tastes like!’ Few users recommended to buy popcorn at home by saying, “To avoid the extra amount this so called ‘tax,’ one should go for ACT II and watch the movie along with it.”
Most of the social media users complained about the inappropriateness of the government’s priorities pointing out that the main economic problems were overshadowed by popcorn taxes. Another recalled, “Take our Finance Minister and his obsession with popcorn taxes at a time when foreign ministers are talking about cryptocurrencies.”