New Delhi, September 17: The industry body Biscuit Manufacturers Welfare Association (BMWA) in the country has written to Finance Minister Nirmala Sitharaman highlighting that the affordable biscuit consumption has been steadily declining over the last few months. According to an Economic Times report, the industry body has asked for a reduction in GST from the 18 percent to 5 percent on biscuits with sale value up to Rs 100 per kg. Parle May See 10,000 Job Cuts Due to 18% GST Affecting Biscuit Sales.
The GST council is scheduled to meet on September 20 to consider tax revisions on various categories including biscuits and the auto sector. Before the implementation of GST, biscuits priced below Rs 100 per kg were exempted from excise. Post the GST implementation, all biscuits are levied with 18 percent GST.
The letter further stated that restructured GST of 5 percent for biscuits below Rs 100 per kg will “enable consumers to not depend on the unorganised segment". The domestic biscuits market is estimated at Rs 37,000 crore annually, and around 25 percent sales comprise of low price high nutrition categories including glucose, Marie and milk sold at prices below Rs 100 per kg.
Last month, Parle said that they will have to let go, 8,000-10,000 people, if the ongoing consumption and slowdown persists. The 18 per cent GST has forced the company to hike prices which have been affecting their sales. The scenario is the same for other biscuit makers as well, who have witnessed a huge decline in sales.