Finance Minister Arun Jaitley finally spoke on the much-debated topic of reduction of GST on sanitary napkins. Jaitley said that Indian manufacturers would lose to Chinese players if the GST on sanitary napkins is reduced. He said, “The Chinese products that are being exported from China are exempted from export duty in China.” Jaitley also said that the Indian market would be flooded with cheaper Chinese products and as a result, the Indian manufacturing sector would suffer greatly.
He said, “The effective tax on sanitary napkins (taking input tax credits into account) was about 3%-4%, as compared to 13% before GST. If you reduce the 12% tax rate on sanitary napkins, we won’t have an Indian manufacturer left,” said Jaitley.
Jaitley also said a single tax slab in India won’t possible. Explaining further, he said, “We can’t have a tax system, which has the same rate for a hawai chappals and a Mercedes car too.”