With the Goods and Services Tax (GST) hike of 5 per cent on packaged food products from Monday, popular Odia foods like flat rice (Chuda), puffed rice (muddi) and fried paddy also known as Lia (khai), will cost more.
This apart, GST will also be charged on flour, curd, lassi, paneer, wheat, rice and oats.
Moreover, tax rates have been increased from 12 per cent to 18 per cent on products such as printing, writing or drawing ink, knives with cutting blades, spoons, forks, paper knives, pencil sharpeners, and LED lamps.
Hotel accommodation up to Rs 1,000 per day will now be taxed at 12 per cent from Monday. The 5 per cent GST will also be charged on hospital room rent above Rs 5,000 per day but ICU has been exempted.
Also, solar water heater will now attract 12% GST as compared to 5% earlier.
Some services such as work contracts for roads, bridges, railways, metro, effluent treatment plants and crematoriums too will see tax going up to 18% from the current 12%.
Besides, taxes will be cut on ostomy appliances and on transport of goods and passengers by ropeways to 5% from July 18, from 12%.
Renting of truck, goods carriage where the cost of fuel is included will now attract a lower 12% rate as against 18%.
Meanwhile, the development has drawn flak from the consumers with several netizens slamming the Centre over these rate revisions.
Some of them have said that such price hike is unwelcome at a time when inflation is pinching the pockets of the common man.
“The original approach of GST was to exempt food and edible products. But, this step of the Modi-led government during inflation is worrisome. Poor families whose backbone has been broken during the Covid-19 pandemic will be suffer double setback,” said financial expert Rajeev Sahu.
Sudhakar Panda, General Secretary, Odisha Byabasaya Mahasangh said, “More than 4 crore small businessmen will be affected if such high taxes are charged. Furthermore, this will also impact the over 12 lakh business establishments. So, we demand the Centre to roll back the taxes.”
“We had expected that the GST would not be levied on hotel rooms as the tourism industry faced heavy losses due to the pandemic. But, instead of cutting down the taxes, the Centre has imposed GST. We want the tax charges to be lowered,” demanded Debasish Pattnaik, Director of Crown Hotel.