A joint report released by EY India and the Home Insect Control Association (HICA) has called for reducing the GST on household insecticide products from 18% to 5%, saying the move is crucial to improve affordability and strengthen India’s fight against mosquito-borne diseases such as malaria, dengue and chikungunya. The report, titled “GST Rationalization for Household Insecticides: A Public Health Imperative”, states that products such as liquid vapourisers, coils and aerosols play a key role in preventive healthcare, especially in areas where large-scale interventions like indoor spraying and bed nets face practical limitations. However, the current 18% GST has made these products less affordable, particularly for low-income and rural households.
According to the report, while urban penetration of household insecticides is between 92% and 99%, rural adoption remains at 64% to 73%, reflecting affordability concerns. The report also warned that high taxation has widened the gap between regulated products and cheaper unregulated alternatives, creating consumer safety risks and revenue leakage.
Jayant Deshpande, Secretary and Director of HICA, said lowering GST would improve access to quality-assured products and help curb illegal unregulated products in the market. Bipin Sapra, Tax Partner at EY India, said a 5% GST rate could significantly improve last-mile protection against vector-borne diseases in high-risk regions. In Guwahati, demand for household insecticides usually rises during the monsoon season due to increasing mosquito-related health concerns across Assam and the Northeast. Traders believe a lower GST rate could make branded mosquito repellents and insecticides more affordable for middle and lower-income households in the region, while also helping organised players compete against cheaper unregulated products widely available in local markets.