Yoga guru Ramdev-promoted Patanjali Ayurved disappointed with government’s decision to impose 12 percent tax rate for ayurvedic products
New Delhi, May25:Yoga guru Ramdev-promoted Patanjali Ayurved is disappointed with the government’s decision to impose 12 per cent tax rate under the new structure, Goods and Services Tax (GST). “We request the government to reconsider the GST rate suggested for the ayurvedic products. The rate on the medicines needs to be decided in a way that it reaches consumers at affordable prices. This increase in the GST rate is quite disappointing,” Patanjali Ayurved spokesperson SK Tijarawala told NDTV Profit. At present, the ayurvedic medicines and products have a total tax incidence of 8-9 per cent depending on items, according to industry experts.
Targeting to achieve a turnover of Rs. 1 lakh crore in the next five years, Patanjali Ayurved is now looking at a 10-fold jump in sales in the next five years. Earlier this month, Ramdev said that Patanjali Ayurved will wipe out the multinational companies (MNCs) in a span of five years. He also stated that the MNCs entered the country with a purpose to “loot”.
The move to increase tax rate on such items might contradict the government’s efforts to promote traditional Indian alternative medicine.
Echoing the similar views, Dabur also expressed disappointment on the GST Council’s decision to levy 12 per cent tax rate on ayurvedic medicines and products, saying it will have an adverse impact on the industry. “We are disappointed with the government’s decision to levy 12 per cent GST on ayurvedic medicines and products,” Dabur India chief financial officer Lalit Malik told news agency Press Trust of India.
With ayurvedic products becoming popular in the fast-moving consumer goods (FMCG) segment, even Hindustan Unilever has been preparing to enter the segment with a new range of products under Lever Ayush brand.