Social media is abuzz with memes and debates about the recently announced clarification about the taxation of different types of popcorn. On December 21, it was confirmed that popcorn will be taxed not only on the basis of whether it is packaged/labelled but also on the basis of sugar and spice content. “Ready-to-eat popcorn”, which is mixed with salt and spices, would attract a 5 per cent GST if it is not pre-packaged and labelled (i.e., unbranded popcorn). If it is pre-packed, labelled and ready-to-eat (branded popcorn), a 12 per cent tax would be levied. However, another rate will be applicable for caramel popcorn, which will attract 18 per cent GST. These rates have come into effect immediately, ending confusion as popcorn was taxed differently across states, according to Reuters.
Union Finance Minister Nirmala Sitharaman said that salted/plain popcorn is considered as namkeen during sale in some states. She explained that caramelised popcorn contains added sugar, and hence it is categorised differently than namkeen. The clarification sparked a range of reactions on social media. Many people were confused about the need to levy three different rates and expressed a wish for a simplified tax system. Others pointed out that it was common practice to charge sweetened items differently. Several people made memes on this viral debate. Check out some of the posts below:
When you pay 18% GST on Popcorn #PopcornTaxpic.twitter.com/Ryrgz6fZRB
— ನಗಲಾರದೆ… ಅಳಲಾರದೆ… (@UppinaKai) December 22, 2024
Pre-Packaged ✅
Caramel ✅
But himalayan salt ❓ now which slab is this? #HappySunday#PopcornTax#PopcornPoliticspic.twitter.com/wiBi0qIkVP— Sudhir Srinath (@SudhirSrinath) December 22, 2024
I hope this logic would not be applied on ‘sugar wali chai’ and ‘sugar free chai’#chai#PopcornTax#Popcornpic.twitter.com/OKW0yPChrb
— :::: (@mythoughts_api) December 23, 2024
How much tax to use this Meme ?#PopcornTaxpic.twitter.com/4Yx1dTv7FK
— Rahul (@42pi) December 21, 2024
Any idea how this is taxed under GST? As namkeen? As caramel popcorn?
Strictly asking for a friend#GSTCouncil#PopcornTax#GSTpic.twitter.com/IqRltyy9jg
— सरल आदमी (@saralaadmi) December 23, 2024
Caramel popcorn being taxed at 18% and salty popcorn being taxed at 12% is a lesson to all of us that we must learn to cook our meals at home.
— Kanika (@DalRotiForLife) December 22, 2024
Apart from social media outrage, the news has also drawn criticism from the opposition. Two former government economic advisers have questioned the tax system introduced in 2017. Click here to read more.