Budget 2025 Expectations Live: Reduce GST on compostable products
“As we approach the upcoming budget, one key issue demands immediate attention: the high cost of compostable cutlery and glasses. These eco-friendly alternatives are already more expensive than plastic options due to production costs, and the current 18% GST only aggravates the problem. This steep tax burden makes it even harder for businesses and consumers to embrace sustainable choices, hindering the widespread adoption of compostable products.
To accelerate the shift towards sustainability, it is crucial that the government reduces the GST on compostable products. A reduction to 5% or, ideally, an exemption from GST would make these alternatives far more accessible and affordable for consumers and businesses alike. By lowering the tax rate, we could significantly drive down the cost of eco-friendly cutlery and glasses, making it easier for industries to switch from plastic to compostable options. This change would not only help reduce our reliance on harmful plastics but also create a positive ripple effect in the market. As the demand for sustainable products increases, more businesses will invest in eco-friendly solutions, leading to a cleaner environment and a boost in the green economy. The potential benefits are clear: reduced plastic pollution, more sustainable production practices, and a stronger commitment to a circular economy.
By lowering the GST on compostable products, the government would provide the necessary push to make eco-friendly alternatives the norm rather than the exception. It’s time to create a market where sustainability and affordability go hand in hand, paving the way for a greener, more sustainable future,” says Shubham Sharma, COO, One Bamboo Pvt Ltd.