Chennai: Anbumani Ramadoss, leader of the Pattali Makkal Katchi (PMK), has urged the Centre to retain the 5% Goods and Services Tax (GST) on palm sugar and opposed a proposal to impose an 18% tax by reclassifying the product under a different HSN code, The Hindu reported.
In a statement issued on Thursday, Ramadoss said palm sugar was earlier classified under HSN code 17029010 and attracted 5% GST. However, GST authorities have reportedly reclassified it under HSN code 17029090, which falls under the 18% tax bracket.
He said palm sugar is a natural product made from palm sap and should not be treated on par with refined sugar for taxation purposes.
The PMK leader warned that the higher tax rate would adversely affect small-scale producers and traders involved in the palm industry. He urged the Union government to restore the earlier classification so that the product continues to be taxed at 5%.
