Madhya Pradesh Health Department Meets Industry Delegation on GST rationalisation for Household insecticide Products

         Industry urged reduction of GST on household insecticides from 18% to 5% to improve affordability and access

         Move expected to strengthen household-level protection against mosquito-borne diseases across Madhya Pradesh

Bhopal: 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. In a move aimed at strengthening preventive healthcare and improving access to mosquito protection products, a delegation led by Home Insect Control Association (HICA) met Madhya Pradesh Health Minister Shri. Rajendra Shukla to seek support for reduction of GST on household insecticides from 18% to 5%.

The meeting follows the outcome of EY–HICA report titled “GST rationalization for household insecticides: A public health imperative”, which highlights the need for improved affordability and accessibility of regulated household insecticide products, particularly among vulnerable and rural populations.

During the meeting, the delegation highlighted the importance of household insecticides in strengthening preventive public health measures, particularly against mosquito-borne diseases such as dengue and malaria.

As per National Center for Vector Borne Diseases Control, Madhya Pradesh reported 1941 dengue cases and 2307 malaria cases in 2025. With Madhya Pradesh witnessing recurring concerns around mosquito-borne diseases during monsoon months, the industry noted that improving affordability of regulated household insecticides can help strengthen household-level protection across vulnerable communities.

Addressing the need for GST reduction on mosquito repellents, Health Minister of Madhya Pradesh, Shri Rajendra Shukla, said, “Madhya Pradesh has actively championed the fight against mosquito-borne diseases. We have achieved a 97% reduction in malaria cases in the past ten years. With health programs like EMBED (Elimination of Mosquito-Borne Endemic Diseases), driven with the support from Godrej Consumer Products and Family Health India (FHI), our state has progressed from high malaria transmission (Category 3) to low transmission (Category 1) in the National Malaria Elimination Framework, with over 3,047 villages and slums achieving malaria free status. To sustain the fight and control on mosquito-borne diseases, it is important that citizens have access to affordable household insecticide products. Hence, rationalisation of GST rates at state and central level is the approach to be considered.”

 

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. Progressive support from states like Madhya Pradesh can become an important starting point for broader policy consideration around improving access to household mosquito protection products across India.

The EY–HICA report notes that while urban penetration of household insecticides remains high, rural adoption continues to lag due to affordability barriers. It also highlights that the current GST structure widens the price gap between regulated products and cheaper unregulated alternatives, creating risks for consumer safety and market distortion.

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.

 

The delegation also recommends introducing clearer product classification under the GST framework to improve affordability, support formalisation and strengthen India’s vector-borne disease prevention efforts.

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