Malayali tea-time snacks fall under 18% GST due to classification issues
Thiruvananthapuram: Several traditional Malayali snacks, including pazhampori (banana fritters), ada, unda, and undam pori, have been placed under the 18% Goods and Services Tax (GST) bracket due to the lack of a specific Harmonised System of Nomenclature (HSN) code.
According to Kiran S Palakkal, president of the Bakers Association of Kerala (BAKE), many regional delicacies, despite their short shelf life of less than 24 hours, are subject to high GST rates due to classification complexities in the taxation system.
Biju Prem Shankar, Chief Operating Officer of Kochi-based Fresh Products, explained that businesses manufacturing snacks must individually seek tax clarifications. "Only GST-paying companies can petition for classification changes, not associations," he stated. Fresh Products managed to get tax rulings on certain items, such as unniyappam (classified under 'sweet meat' and taxed at 5%) and chips (taxed at 12% under 'fried namkeen snacks').
However, the taxation disparities persist. Similar products sold at restaurants are taxed at only 5% under service goods, while those sold by manufacturers are subjected to higher rates. The variation in recipes and names across regions adds to the confusion.
Calls for a more uniform GST framework have been ongoing. Last year, Coimbatore-based restaurateur D. Srinivasan raised concerns over the inconsistent taxation of food items, citing cases where a plain bun is tax-free, but adding cream increases its tax to 18%.
Industry representatives argue that simpler and more consistent tax regulations would benefit both businesses and consumers, ensuring that traditional food items do not bear an undue financial burden.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Trump says EU has until July 4 to approve last year's trade deal or it will face higher tariffs
Washington (AP): President Donald Trump has said in a social media post that goods from the European Union would face higher tariff rates if the 27-member bloc fails to approve last year's trade framework by July 4.
The announcement on Thursday appeared to be a deadline extension after the president said last Friday that EU autos would face a higher 25 per cent tariff starting this week. Trump made the updated announcement after what he described as a "great call" with European Commission President Ursula von der Leyen.
Still, the US president was displeased that the European Parliament had yet to finalize the trade arrangement reached last year, which was further complicated in February by the US Supreme Court ruling that Trump lacked the legal authority to declare an economic emergency to impose the initial tariffs used to pressure the EU into talks.
"A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!" Trump posted. "I agreed to give her until our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels."
It was unclear from the post whether Trump was implying that the tariff rates would jump on all EU goods or the increase would only apply to autos.
His latest statement indicates he might be backing away from his earlier threat on EU autos by giving the European Parliament several more weeks to approve the agreement.
Under the original terms of the framework, the US would charge a 15 per cent tax on most goods imported from the EU.
But since the Supreme Court ruling, the administration has levied a 10 per cent tariff while investigating trade imbalances and national security issues, aiming to put in new tariffs to make up for lost revenues.
