Ernakulam MP Hibi Eden raised concerns about a perceived north-south divide in the Goods and Services Tax (GST) structure on food items during a debate on the Finance Bill, 2025, in the Lok Sabha.
He claimed that traditional Kerala delicacies such as banana fritters and dal vada were subjected to an 18 per cent GST, while popular North Indian sweets like jalebi, barfi, and gulab jamun were taxed at a mere 5 per cent.
Eden accused the central government of perpetuating regional discrimination through its tax policies. He asserted that the nation had already witnessed divisions based on religion, culture, and attire, but this marked the first time such a divide was evident in the tax framework.
He argued that the uneven taxation placed an unfair burden on small businesses in Kerala, where these traditional snacks form an integral part of daily life.
Highlighting the economic impact of the GST structure, Eden emphasised that the disparity in tax rates affected the livelihoods of small traders who primarily deal in these traditional foods.
He suggested that the current system favoured widely consumed North Indian sweets, which enjoy a considerably lower tax rate, while neglecting regional specialties of the southern states.
Beyond the tax disparity, Eden also criticised the government's claims of robust economic growth, stating that key economic indicators painted a different picture.
He noted that transport growth had declined from 6.4 per cent to 5.8 per cent, while bank credit growth had dropped from ₹21 lakh crore to ₹11.5 lakh crore.
Additionally, he highlighted that cement production, a crucial indicator of infrastructure development, had decreased from 10.3 per cent to 3.1 per cent.
Eden argued that while corporate profits continued to rise, these gains did not translate into higher employment or better wages for workers.
He asserted that the government's economic policies were benefitting corporations at the expense of the common people, leaving workers to bear the brunt of economic challenges.
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