• EY
– HICA report recommends reducing GST on household insecticides from 18% to 5% with clear classification under the GST framework
• Policy change could effectively help combat vector borne diseases, improve rural access, curb unsafe unregulated products and strengthen preventive healthcare outcomes
Mumbai: Household insecticides such as liquid vapourisers, coils, aerosols, continue to play an important role in India’s preventive health ecosystem,
particularly at the household
level where protection against vector-borne
diseases remains uneven. Launched on Thursday, a joint
EY–Home Insect Control Association (HICA) report titled “GST rationalization for household insecticides: A public health imperative” examines how the current
18% GST rate affects affordability, access and usage of these products, especially
among vulnerable and high-risk populations, and evaluates the
public-health case for realigning their tax treatment to a lower 5% rate in line with other essential hygiene
and health-protective products.
The EY-HICA report
highlights that household
insecticides serve as a first line of defense
against diseases such as malaria,
dengue and chikungunya, particularly at the household
level where large-scale
interventions like indoor residual spraying and bed nets face practical and behavioral limitations. Despite this critical
preventive role, the category
continues to be taxed at 18%, while
several essential health and hygiene
products were reduced to a 5% or nil GST rate post September
2025.
While urban penetration of household insecticides stands at 92–99%,
rural adoption remains limited at 64–73%, reflecting affordability constraints. The EY-HICA report notes that this gap disproportionately affects low-income and rural households that are most vulnerable to vector-borne diseases, potentially limiting consistent use of quality-assured
products.
Talking about the urgent need for GST relief, Jayant Deshpande, Secretary and Director, Home Insect Control Association (HICA) said, “Household insecticide products like
liquid vapourisers are essential for preventing
mosquito-borne diseases such as malaria and dengue. However, these products are currently taxed at 18%, making them less affordable
for consumers. At the same
time, illegal players continue to sell
unregulated products
without paying taxes, creating an uneven playing field for compliant
companies. A reduction in GST would not only support the organised sector but also make these essential products more accessible to households, strengthening public health outcomes. Affordable products post GST relief may increase government revenue due to higher consumption.”
The EY-HICA report also highlights that the current GST framework
widens the price differential between regulated household insecticides and
substandard, unregulated alternatives that are often misclassified under lower
tax slabs. This creates market distortions,
poses consumer safety
risks and leads
to revenue leakage.
To address these issues, the EY-HICA report recommends rationalizing GST on household insecticides to 5%, alongside
introducing a clear and distinct product classification under the GST rate schedule.
These measures are expected to improve affordability, discourage
unsafe substitutes, promote formalization and strengthen India’s disease-prevention
ecosystem.
Commenting on the potential impact of reform,
Bipin
Sapra, Tax Partner, EY India said, “A reduction
of GST to 5% can materially improve
access to safe and regulated household insecticides, particularly in rural and high-risk regions. Improved affordability could drive wider
adoption, strengthen last-mile protection against vector-borne diseases and support India’s
broader preventive healthcare objectives. While some input tax credit
accumulation may arise due to an inverted duty structure, the public-health and
affordability benefits of rationalisation clearly outweigh the operational challenges for industry.
From a public policy perspective, the report suggests that
improving affordability and
access to household insecticides can complement national disease-control programmes by strengthening last-mile
protection and reinforcing community-level prevention, particularly in endemic regions.