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AICPDF plea to reconsider proposed GST rate hike of 35% on aerated beverages
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Friday, 20 December, 2024, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The All India Consumer Products Distributors Federation (AICPDF) has made an appeal to the Prime Minister, Finance Minister, and GST Council to reconsider the proposed GST rate hike of 35% on aerated beverages.
In a statement, AICPDF opined that such a move could negatively impact distributors, retailers and consumers, particularly in rural and semi-urban areas, and stifle the growth of the beverage sector.
AICPDF called it an unfair taxation as aerated beverages are already taxed higher than many other food and beverage categories, despite being a mass consumption product.
"Such disproportionate taxation creates an uneven playing field and restricts the growth potential of this category," reads the statement issued by AICPDF.
AICPDF expressed concerns that an increase in GST would likely lead to further reduction in margins of distributors and retailers, thereby impacting their incomes and livelihood.
Also, GST hike would result in significant price increases, making these products unaffordable for a large section of the population and leading to a steep decline in sales.
AICPDF has requested that Government should instead 'Rationalise and lower the GST rate' on aerated beverages to align with other food and beverage categories.
AICPDF representing 450,000 distributors and 13 million kirana stores, explains that a lower tax rate would help sustain and increase distributor and retailer incomes, keep products affordable for rural, semi-urban, and lower-income populations and boost sales, leading to higher revenues for both Central and State Governments.
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