MP Highlights GST Disparity: Kerala vs North Indian Sweets

Ernakulam MP Hibi Eden accuses the government of regional tax discrimination, highlighting the disparity in GST rates between Kerala's snacks and north Indian sweets. Eden claims the GST structure burdens Kerala's small businesses and emphasizes the decline in economic indicators, challenging the government's economic growth assertions.

Ernakulam MP Hibi Eden on Monday spotlighted a perceived north-south divide in GST on food items, referencing Kerala as an example. He noted that popular Kerala delicacies like banana fritters and dal vada were taxed at a high rate of 18 percent, while north Indian sweets attracted only a 5 percent GST.

During a Lok Sabha debate on the Finance Bill, 2025, the Congress MP criticized the central government for regional discrimination in tax policies. Eden urged for a more balanced approach to ensure equitable treatment across different regions.

He also raised concerns about the financial pressure on small businesses in Kerala due to the GST structure, pointing out a decline in economic indicators such as transport and bank credit growth, highlighting inconsistencies in the government's claims regarding economic progress.

(With inputs from agencies.)