A joint report by EY and the Home Insect Control Association (HICA) has made a strong case for reducing GST on household insecticides.
Right now, these products are taxed at 18%.
The report suggests cutting it down to just 5%.
Why? Because insecticides play a key role in preventing serious mosquito-borne diseases like malaria, dengue, and chikungunya.
A Public Health Issue, Not Just a Tax Matter
The report, titled “GST rationalization for household insecticides: A public health imperative,” highlights a bigger concern—public health.
Lower taxes would make these products more affordable, especially for rural and low-income families.
These are the groups most at risk from mosquito-borne diseases.
Experts say that clearer product classification under GST would also help ensure better implementation and pricing.
Urban vs Rural: A Big Gap in Usage
The study shows a sharp contrast between urban and rural India.
In cities, usage of insecticides like vapourisers, coils, and sprays is very high—between 92% and 99%.
But in rural areas, adoption drops to 64–73%.
The main reason is simple: affordability.
For many households, these products are still too expensive to use regularly.
First Line of Defence at Home
Household insecticides act as the first level of protection against mosquitoes.
Large-scale solutions like spraying or bed nets don’t always work effectively due to practical challenges and habits.
According to Jayant Deshpande, these products are essential but remain out of reach for many because of the high tax rate.
Why the 18% GST Rate Is Being Questioned
The report points out an inconsistency.
Many essential health and hygiene products saw GST cuts to 5% or even zero after September 2025.
However, household insecticides are still taxed at 18%.
This becomes even more noticeable after the government simplified the GST system by reducing multiple tax slabs into just two main ones—5% and 18%—along with a 40% slab for luxury and sin goods.
The Bottom Line
The recommendation is clear: lower GST on insecticides to improve access.
Making these products cheaper could boost usage in rural areas and help prevent diseases at the household level.
In this case, a tax cut isn’t just about savings—it could directly impact public health outcomes.
