AICPDF Urges Government to Halt GST Hike on Aerated Beverages

The All India Consumer Products Distributors Federation (AICPDF) has appealed against a proposed GST hike on aerated beverages to 35%, citing negative impacts on distributors and consumers, especially in rural and semi-urban areas. They argue this would harm affordability and sales, urging for reconsideration.

The All India Consumer Products Distributors Federation (AICPDF) has made a fervent appeal to the government, cautioning against raising the Goods and Services Tax (GST) on aerated beverages to 35 per cent. The federation, representing a vast network of FMCG distributors, warns this hike could severely impact stakeholders, including distributors, retailers, and consumers, particularly in less urbanized regions.

AICPDF highlights that aerated beverages provide affordable refreshment to lower-income groups and rural populations. An increase in tax could stifle consumption and threaten the livelihoods of distributors nationwide. They urge the government to prioritize policies that sustain affordability and growth within the FMCG sector by reconsidering the GST increase.

This plea follows recommendations by the Group of Ministers on GST rate rationalization to raise taxes on 'sin goods' like aerated beverages and tobacco. Currently, these items are taxed at a 28 per cent rate plus a 12 per cent cess. AICPDF contends that such a hike would pressure the margins of distributors and potentially depress sales.

(With inputs from agencies.)