New Delhi

A joint report by EY and the Home Insect Control Association (HICA) has urged the GST Council to consider cutting the tax rate on household insecticides from 18 per cent to 5 per cent. The recommendation aims to improve affordability, tackle vector-borne diseases, and strengthen preventive healthcare measures.

Products such as liquid vapourisers, mosquito coils, and aerosols remain vital in protecting households, especially in areas where safeguards against mosquito-borne illnesses are inadequate.

The report noted that the current 18 per cent GST slab affects access and regular use of these products, particularly among vulnerable and high-risk groups. It argued that lowering the tax to 5 per cent would align household insecticides with other essential hygiene and health-related goods already placed in lower tax brackets.

EY India Partner and National Leader for Indirect Tax Bipin Sapra said that as GST reforms continue, the present tax treatment of household insecticides does not fully reflect their public health importance.

HICA Director Jayant Deshpande said a reduced GST rate, along with clearer product classification under the tax system, would make these items more affordable, curb the spread of low-quality products, and encourage formalisation of the sector.

The report highlighted that diseases such as malaria, dengue, and chikungunya remain a serious public health concern in India.

It also pointed out the growing reach of the household insecticide market, with penetration levels estimated at 92-99 per cent in urban India and 64-73 per cent in rural areas.

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According to the study, the sector’s market size rose from Rs 7,147 crore in 2023 to Rs 8,138 crore in 2025.