On Saturday, the Goods and Services Tax (GST) Council, chaired by the finance minister, Nirmala Sitharaman announced three tax slabs for popcorn. The distinction is based on the seasoning and packaging of the snack. Since the announcement, netizens have been having a meme fest on social media. They are struggling to wrap their heads around the complexity of the taxation structure viz popcorn. Additionally, the move has also attracted political ire, questioning the centre’s taxation policies.

At the GST Council meeting, the centre announced the tax structure on popcorn iterating that there will be no change in the existing rate. From now on, non-branded popcorn mixed with salt and spices will attract a 5% GST. Pre-packaged and branded popcorn will attract 12% GST. On the other hand, caramel popcorn will draw 18% GST. For context, pre-packaged popcorn currently attracts a tax of 5%.

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Explaining the rationale behind the move, Nirmala Sitharaman said that any product with added sugar attracts a different tax. This is due to its categorisation as a sugar confectionery. “Salted, caramelised, plain popcorn is being sold as namkeen in certain states. Caramelised popcorn comes with added sugar, so the treatment rate is different from namkeen.” She added, “We had a wide-ranging discussion on caramelised popcorn. All states agreed that all items with added sugar are treated under a separate tax bracket.”

The announcement has sent moviegoers into a frenzy who can’t help but take a dig at the decision. Social media is seeing a wave of hilarious memes on the sugar-coated tax. Several users also expressed frustration over the escalating taxes. Additionally, several users noted that GST is meant to be a simple tax, jibing at the elaborate and complex tax structure. One user joked, “Asked phuchkawalla to give a few with meetha pani yesterday and he charged me extra cause 18% GST on sweet dishes.” Meanwhile, another jibed, “Man arrested at movie theatre for smuggling sugar inside for his popcorn.”

If salted popcorn is taxed at 5% GST and caramel popcorn at 18% GST, what will be the GST rate for this flavor #GSTCouncilMeeting #NirmalaSitharaman #PopcornTax @nsitharaman @FinMinIndia @khurpenchh pic.twitter.com/LUNfTlJSuj

— यादव गौरव (@yadavgaurav0007) December 21, 2024

I buy #popcorn at 18% GST!!

I buy fuel at Rs 80 a litre… ⛽⛽⛽⛽

I spend my life paying taxes – On income, on saving, on investment…

Yet, I have no job security, no health security, no retirement security!

Am I a fool or a patriot?

— Shruti Malhotra ‏‎ (@Shruti_Malhotra) June 27, 2020

Any idea how this is taxed under GST? As namkeen? As caramel popcorn?

Strictly asking for a friend#GSTCouncil #PopcornTax #GST pic.twitter.com/IqRltyy9jg

— सरल आदमी (@saralaadmi) December 23, 2024

What a mockery of GST our politicians are making.

All state FMs meet and discuss how to tax popcorn basis their content.

Next will be food menu in restaurants

Dal fry no GST
Dal tadka 2.5%
Dal makhni 5%
Panner butter masala 18%
Butter chicken 28%

— Gurmeet Chadha (@connectgurmeet) December 21, 2024

Moreover, several politicians have also called out the decision, noting its ‘absurd’ nature. India’s previous Chief Economic Adviser K V Subramanian took to X to comment on the issue. “Complexity is a bureaucrat’s delight and citizens’ nightmare.” Meanwhile, Arvind Subramanian, said “The folly is compounded because instead of at least moving in the direction of simplicity we are veering to greater complexity, difficulty of enforcement and just irrationality.”

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Jairam Ramesh, leader and spokesman of the main opposition Congress party also weighed in on the issue. “Absurdity of three different tax slabs for popcorn under GST … Only brings to light a deeper issue that the growing complexity of a system that was supposed to be a Good and Simple Tax.”