Sitaraman's Popcorn

Introduction

In the recent months, the tasty caramel popcorn has been the center of the debate in the parliament and on social media platforms. Once claimed to be a simple snack, enjoyed by many people specially the moviegoers now has become a symbol of controversies around this modern tax regime. This blog travels and reveal the layering of taxation, while exploring the impact on the economy and the rationale behind this simply complex caramel taxation.

The Rise of Popcorn Taxation

The taxation on popcorn varies different in the different jurisdiction of the country, due to these diverse approaches the government eyes on the snacks reflected a three-tiered Goods and Service Tax (GST) on the popcorn which sparked a thousand of public debate and criticism¹. According to this system the ready-to-eat popcorn is taxed 5%, packaged popcorn at 12%, and the most debatable caramelized popcorn at exploitative 18%².