Finance Minister, Nirmala Sitharaman’s statements are always the hot topic among people but this time its about popcorn! Yeah, popcorn.

How did something eaten as a snack became so important that it had to be discussed in a council? In July, 2021, the Good and Services Tax for pre-packed and labelled ready-to-eat salted popcorn and caramelized popcorn were settled at the rate of 12% and 18% respectively which raised eyebrows for many people as they both are considered under ‘namkeen’.

In the recent GST council held on December 21, 2024 led by Nirmala Sitharaman, she discussed and clarified why caramelized popcorn attracts more GST than the salted one. She stated that caramelized popcorn means popcorn with ‘added sugar’ and hence the tax on any sugar or added sugar products are treated differently just like carbonated drinks or other sugar content products. Until they have salt or masalas in them the products will be considered ‘Namkeen’ and will attract 12% otherwise 18%.

The finance minister also highlighted that the rationale behind this differentiation is based on the fact that sugary products, including sweets and beverages, are generally subject to higher taxes to account for their health impact and consumption patterns.